Wyndham Destinations Credit Agreement
Wyndham Destinations, the vacation ownership and exchange company, recently announced the successful completion of a $425 million term loan credit agreement. The new credit agreement will help the company further expand its business and fuel its growth in the timeshare industry.
The new term loan facility has a maturity of five years and is expected to bear an interest rate of LIBOR plus 1.75%. Wyndham Destinations plans to use the proceeds from the credit agreement to refinance its existing term loan B facility, which is due to mature in 2023.
The credit agreement was arranged by JPMorgan Chase Bank, N.A., as administrative agent, and Bank of America, N.A., as syndication agent. Several other financial institutions also participated in the transaction.
According to Michael D. Brown, President and CEO of Wyndham Destinations, the credit agreement will help the company strengthen its liquidity position and provide it with the financial flexibility to pursue new growth opportunities.
“We are pleased to have successfully completed this credit agreement, which reflects the confidence our lending partners have in our business and our ability to generate cash flow,” said Brown. “The additional liquidity provided by this agreement, along with our ongoing cost savings initiatives, positions us well to invest in our business and create value for our shareholders.”
Wyndham Destinations has been one of the top performing companies in the vacation ownership and exchange industry over the past few years. The company reported a revenue of $3.9 billion in 2019, up from $3.5 billion in 2018. It also completed the spin-off of Wyndham Hotels & Resorts in 2018, which helped it focus on its core business of vacation ownership and exchange.
The new credit agreement will further strengthen Wyndham Destinations` balance sheet and enable it to capitalize on growth opportunities in the industry. With a strong liquidity position and a solid business model, the company is well-positioned to continue its growth trajectory and deliver value to its shareholders.
