Travelex terminates sale process as offers deemed unacceptable

Maria Nikolova

The group received non-binding offers which were unacceptable to RCF Lenders and holders of Senior Secured Notes.

About two months after Travelex announced the launch of a sale process, the group has terminated the process.

Today, Travelex confirmed it received a number of non-binding offers for the Travelex Group in a first round of the sale process and a short list of parties was invited to participate in a second round of detailed diligence. The group received non-binding offers at the end of the second round which were unacceptable to RCF Lenders and holders of Senior Secured Notes. Consequently, the sale process has been terminated.

In parallel, discussions have continued between RCF Lenders and an ad hoc group representing over two thirds of Senior Secured Noteholders in relation to a long term new money financial restructuring of the Travelex Group.

In order to provide stability for all stakeholders (and particularly the Travelex Group’s customers, suppliers and employees) while the terms of this financial restructuring are negotiated and agreed between lender groups, the Issuer has today received a temporary waiver and forbearance (the “Forbearance”) from more than 70% of the beneficial holders of the Senior Secured Notes. Subject to its terms, the Forbearance ensures that no enforcement action can be taken by Senior Secured Noteholders in relation to the non-payment of the €14.4 million interest coupon due on 15 May 2020, until expiry of the agreement on 2 July 2020. Other holders of the Senior Secured Notes are also invited to respond to the Noteholder Identification exercise launched by GLAS Specialist Services Limited and may also accede to the terms of the Forbearance Agreement by contacting the Issuer. The Issuer can also be contacted through its advisors: PwC and Sidley Austin.

Travelex’s CEO, Tony D’Souza, said: “This Forbearance Agreement provides the stability required in order for lenders to finalise their discussions on a debt restructuring which we expect will recapitalise the group’s balance sheet and inject new capital into the business.”

In May, Standard & Poor’s 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 said 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 also lowered its issue rating on the €360 million senior secured notes due 2022 issued by Travelex Financing PLC to ‘D’ (default) from ‘C’.

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.

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

<