CWT has sought to refinance its operations after a tumultuous 18-month period in the corporate travel sector.
The company has entered into an agreement with financial stakeholders representing over 90 per cent of its outstanding debt.
The deal is designed to recapitalise the business and further strengthen its financial position as the recovery in business travel continues to gain momentum in key markets around the world.
Key terms of the agreement, entered into with financial stakeholder Barings, among others, include the addition of $350 million of new equity capital into the business.
At the same time, almost $900 million of debt will be eliminated by replacing the existing $1.5 billion in debt with new first lien debt of $625 million issued at market rates and a new undrawn revolving credit facility.
CWT said it expects to begin soliciting formal approval of the plan from its existing financial stakeholders in the next few weeks and to finalise implementation of the plan later this year.
“This is great news for CWT and our stakeholders, highlighting the progress we have made to position CWT for long-term success and providing significant financial resources to further grow and develop our business,” said Michelle McKinney Frymire, CWT chief executive.
“This is an important and exciting time for travel, as the industry is seeing meaningful increases in demand for the first time since the start of the pandemic.
“As we ramp up operational capacity to continue serving our customers through the recovery, we are continuing to advance our strategic objectives, including driving innovation and delivering industry-leading solutions.”