Travel + Leisure Co. Slashes Interest Rate on $869M Loan by 50 Basis Points
Travel + Leisure Co. (NYSE:TNL) revealed on Wednesday that it has successfully finalized the Eighth Amendment to its Credit Agreement. This strategic move has led to a reduction in the interest rate on its $869 million 2024 Term Loan B Facility by 50 basis points, transitioning from SOFR plus 2.50% to SOFR plus 2.00%. The maturity date for the loan remains unchanged, set for December 14, 2029.
“The repricing mirrors the robustness and reliability of our business model, the ongoing enhancement in our credit profile, and the trust lenders place in our long-term performance,” stated Erik Hoag, Chief Financial Officer of Travel + Leisure Co. The company is a prominent operator of vacation ownership, travel club, and lifestyle travel brands, catering to over six million vacationers annually.
This strategic financial move bolsters the company’s financial flexibility and reinforces its disciplined growth framework. This is particularly crucial in the face of economic challenges such as inflation and higher interest rates that are currently impacting the leisure travel industry.