Travelex reaches debt restructuring agreement with £84m funding

Maria Nikolova

The transaction will provide the company with £84m of new liquidity and an 84% reduction of its existing financial debt.

Travelex today announces it has reached an agreement with at least 66.7% of its Senior Secured Noteholders (SSNs) and all of its Revolving Credit Facility (RCF) lenders on the terms of a comprehensive debt restructuring.

The transaction will provide the company with £84 million of new liquidity and an 84% reduction of its existing financial debt. The SSNs, led by members of an Ad Hoc Committee of SSNs (the AHC), will take full control of Travelex. New money cash funding of £84 million will be provided by participating SSNs in the form of New Senior Secured Notes.

The AHC will provide an initial commitment through bridge funding of £15 million provided yesterday (to be refinanced by the New Senior Secured Notes), with upsizing flexibility for both the AHC and any participating SSNs wishing to subscribe. There will be full equitisation of the existing €360 million SSNs, and full reinstatement of the existing £50m RCF in the form of a Reinstated Term Loan and about £10 million guarantees in the form of reinstated guarantees (together, the “New RCF”).

SSNs will receive warrants over 17.5% of New Holdco equity at exit. Bridge Funding providers will receive further warrants of 2.5% of New Holdco Equity.

The transaction contemplates the division of the existing Travelex group into two parts:

  • Initial FundCo (“New Travelex”), which will comprise the wholesale and outsourcing business and certain international retail businesses of Travelex abroad (Brazil, Middle East & Turkey, Nigeria and Asia Pacific);
  • Optional FundCo (“Warehouse Travelex”), which will principally comprise certain of Travelex’s retail businesses in UK, Europe and North America.

Many of the New Travelex businesses will be transferred at completion, while certain of these businesses will require regulatory approvals which are expected to be obtained in the coming months. Members of the AHC are expected to control over 50% of the equity of New Travelex.

The transaction is expected to complete by early August.

Read this next

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

<