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.

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