Wyndham Hotels & Resorts Announces Successful Completion of $1.1 Billion Refinancing Transaction

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Wyndham Hotels & Resorts, Inc. (NYSE: WH) today announced that it successfully completed the refinancing of its previously outstanding Senior Secured Term Loan B Facility due May 2025.  The Company closed on a new $1.1 billion Senior Secured Term Loan B Facility, which will mature in May 2030.  The net proceeds from the New Term Loan B were used to repay all outstanding principal under its Term Loan B due 2025.

The New Term Loan B garnered significant investor demand, resulting in an upsize of nearly $400 million while in market and an attractive interest rate of SOFR plus 2.25% (with a 0.10% credit spread adjustment), at an issue price of 99.5%. The refinancing represented one of the largest and tightest priced syndicated leveraged loan issuances for any “double-B” corporate-credit rated company thus far in 2023 – indicative of the Company’s attractive, resilient franchise business model.  In addition, the Company recently received an investment grade credit rating on its senior secured debt from Fitch Ratings Inc., and, as a result, now has the ability to access both the high yield and investment grade credit markets for future financings.

“We are extremely pleased with the completion of our New Term Loan B.  Our refinancing strategy extended our existing Term Loan B Facility from 2025 to 2030, moving our next material debt maturity to 2027 and increasing our weighted average maturity from 3.2 to 6.0 years,” said Michele Allen, Chief Financial Officer.  “With the opportunistic refinancing behind us and a franchised business model that is highly cash generative, we possess significant financial flexibility to execute on our strategic objectives of delivering outstanding value to our guests and franchisees while driving strong shareholder return.”

Deutsche Bank Securities Inc., JPMorgan Chase Bank, N.A. and BofA Securities, Inc. acted as joint lead arrangers for the New Term Loan B.  Barclays Bank PLC, U.S. Bank National Association, Wells Fargo Bank, National Association and Wells Fargo Securities, LLC, The Bank of Nova Scotia, Truist Securities, Inc., and PJT Partners LP acted as joint bookrunners.

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About Mary Weyand 14180 Articles
Mary founded Scoop Tour with an aim to bring relevant and unaltered news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research. With ample knowledge about the Automobile industry, she also contributes her knowledge for the Automobile section of the website.

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