S&P downgrades Travelex Holdings to ‘Selective Default’

Maria Nikolova

The downgrade reflects Travelex’s missed interest payment on its €360 million senior secured notes.

Standard & Poor’s has downgraded Travelex Holdings Ltd to ‘Selective Default’ as the FX services provider did not make the interest payment on its €360 million senior secured notes on May 15, 2020, and entered a 30-day grace period in order to seek waiver and forbearance arrangements from its lenders.

S&P says it does not believe that Travelex will make the interest payment due on the notes within the 30-day grace period. Hence, S&P cut the long-term issuer credit rating on Travelex to ‘SD’ (selective default) from ‘CC’.

S&P is also lowering its issue rating on the €360 million senior secured notes due 2022 issued by Travelex Financing PLC to ‘D’ (default) from ‘C’. The recovery rating on the notes is unchanged at ‘5’. The ‘CCC’ issue and ‘1’ recovery ratings on the £90 million super senior revolving credit facility (RCF) are unchanged too.

Let’s recall that, earlier in May, Travelex Financing Plc said it no longer intended to pay the coupon payment of €14,400,000 due on 15 May 2020 in respect of the Senior Secured Notes. The Travelex Group is intending to use its grace periods to seek appropriate waiver and/or forbearance arrangements from its Noteholders.

Travelex said back then that discussions continue on a long term solution for the group with certain of its lenders and their advisers, and with certain bondholders representing more than 66% of the outstanding face value of the Senior Secured Notes and their advisers. Travelex is also actively seeking offers for the Travelex Group from interested bidders.

As FinanceFeeds has reported, in April 2020, Travelex announced that, as part of its continuing assessment of strategic options to maximise value for its stakeholders, the Board of Travelex Holdings Limited decided to seek offers for the Travelex group.

Read this next

Digital Assets

SEC bypassed commission vote in approving Ethereum ETFs

The Securities and Exchange Commission’s (SEC) Trading and Markets Division has approved several spot Ethereum exchange-traded funds (ETFs) using delegated authority, rather than a vote by the full commission.

blockdag

BlockDAG Presale Draws Massive $32.4M Hinting At its 30,000x ROI Potential, Overshadowing Retik Finance at Bitmart

Learn why BlockDAG’s innovative strategies and $32.4M presale success are making millionaires, overshadowing Retik Finance’s struggle on Bitmart.

Institutional FX

Malaysia’s exchange launches API for onboarding retail investors

“The Exchange actively listens to the evolving needs of our customers. This initiative is key in delivering on our commitment towards greater customer-centricity. We will continue to work closely with our POs and introduce service innovations to attract more investors, bolstering the competitiveness of our market.”

Fintech, Uncategorized

LiquidityBook welcomes JonesTrading to LBX Post-Trade Hub

“As we near the T+1 deadline, we are excited to continue helping firms achieve straight-through processing in addition to delivering new enhancements to our comprehensive range of cloud-native buy- and sell-side trading solutions.”

blockdag

Should I Invest Today? Which Altcoins Could Make 2-5X Profits Amid the Latest News?

Investing in cryptocurrencies can be a journey full of surprises, given their volatile nature.

Executive Moves

Bakkt promotes Ray Kamrath to CCO of Crypto

Bakkt has promoted Ray Kamrath to Chief Commercial Officer of the company providing custody, trading, and onramps to the crypto space.

Industry News, Uncategorized

HSBC relocates US headquarters to The Spiral, New York

HSBC has opened its new U.S. headquarters at The Spiral, a renowned office building in New York City’s Hudson Yards neighborhood.

blockdag

Best Cryptos to Buy Before the Real Bull Run Kicks Off

With the bull run of 2024 already underway, investors are eager to identify cryptocurrencies that promise significant growth.

Market News

This time is different – is it?

The stock market wants lower interest rates – or rather, it has been expecting them for months. Justified? The US economy looks very robust, so higher interest rates would actually be the order of the day.

<