Wyndham Hotels & Resorts has announced the successful repricing of its $1.1 billion Senior Secured Term Loan B Facility, along with a $400 million upsize, which now matures in May 2030. The new interest rate is SOFR plus 1.75%, representing a 60 basis point reduction, with an issue price of 99.875%, the tightest in the SOFR era. This move is expected to generate annual interest savings of approximately $6 million, with no changes to the company’s maturities or covenants.
According to Michele Allen, Chief Financial Officer and Head of Strategy at Wyndham, the opportunity to reprice this loan with a meaningful spread reduction and upsize by $400 million would not have been possible without the outstanding performance of their business over the past year. The elevated market demand underscores strong investor confidence in their asset-light, highly cash-generative franchise business model, and has enabled them to secure best-in-class pricing, further fortifying their financial flexibility.
The net proceeds from the upsizing will be used for general corporate purposes, including repaying balances on the company’s revolving credit facility. Wells Fargo Securities, LLC served as the lead arranger, while joint bookrunners included Deutsche Bank Securities Inc., JPMorgan Chase Bank, N.A., BofA Securities, Inc., Barclays Bank PLC, Bank National Association, Bank of Nova Scotia, and Truist Securities, Inc.
