BUSINESS TRAVEL

CWT Enters into Agreement with Financial Partners to Recapitalize Business as Business Travel Recovery Gains Momentum

CWT | September 16, 2021

CWT Enters into Agreement with Financial Partners to Recapitalize Business as Business Travel Recovery Gains Momentum
CWT, the Business-to-Business-for-Employees travel management platform, announced that it has entered into an agreement with financial stakeholders representing over 90% of the Company’s outstanding debt to recapitalize the business and further strengthen CWT’s financial position as the recovery in business travel continues to gain momentum in key markets around the world.

CWT expects to begin soliciting formal approval of the plan from its existing financial stakeholders in the next few weeks and to finalize implementation of the plan later this year.

Key terms of the agreement, entered into with financial stakeholder Barings LLC, among others, include:
  • Adding $350 million of new equity capital into the business;
  • Eliminating almost $900 million of debt by replacing CWT’s existing $1.5 billion in debt with new first lien debt of $625 million issued at market rates and a new undrawn revolving credit facility;
  • Providing CWT with substantial long-term liquidity through the resulting balance sheet cash and new revolving credit facility; and
  • Providing for all business partners and other providers of goods and services to CWT to be paid in full.

CWT expects to begin soliciting formal approval of the plan from its existing financial stakeholders in the next few weeks and to finalize implementation of the plan later this year.

“This is great news for CWT and our stakeholders, highlighting the progress we have made to position CWT for long-term success and providing significant financial resources to further grow and develop our business,” said Michelle McKinney Frymire, CWT’s Chief Executive Officer. “This is an important and exciting time for travel, as the industry is seeing meaningful increases in demand for the first time since the start of the pandemic. As we ramp up operational capacity to continue serving our customers through the recovery, we are continuing to advance our strategic objectives, including driving innovation and delivering industry-leading solutions. We are pleased to be moving ahead with overwhelming support from our financial partners, who will become CWT’s new majority owners, underscoring their confidence in the market, CWT and our strategy and services.”

Ms. McKinney Frymire added, “Implementation of this agreement will enable us to move beyond the pandemic, accelerate investments that create industry-leading experiences for our clients and travelers, and position CWT to benefit from the recovery already underway. Our teams have risen to the occasion and continued to meet high customer expectations at every turn despite the pandemic’s outsized impact on the travel industry. Looking ahead, our focus remains on providing best-in-class travel experiences for our customers and travelers while maintaining strong relationships with our partners, suppliers and other stakeholders. At the same time, we are excited to accelerate our strategic priorities. With travel demand now increasing, the actions we are taking will enable us to build on our industry-leading position.”

Advancing CWT’s Strategy and Business Momentum

CWT entered the pandemic with a track record of strong growth and delivering on its strategic priorities. Building on this success, CWT has used the period of COVID-related travel restrictions and related demand reductions to accelerate many of its strategic development plans and investments across its innovative products, program delivery and travel services.

As the recovery in business travel, meetings and events gains momentum, CWT’s customer proposition is fundamentally stronger, broader and more robust. Among others, CWT’s many improvements to benefit travelers include:
  • Patented algorithm search applications;
  • A true omni-channel experience;
  • More efficient follow-the-sun servicing capabilities;
  • An enhanced digital hotel booking experience;
  • Refined data analytics for greater insight and improving ROI; and
  • Dedicated resources and services to enable a safe and secure return to travel.
  • Since its inception, CWT has successfully delivered efficient, safe and connected travel programs from city centers to some of the most remote and hard-to-reach corners of the world, maximizing the potential of technological advancements and human ingenuity. Importantly, CWT believes that a true omni-channel experience brings together people and technology, and is essential for business travel and meetings & events now, and in the future, which is why the Company has been enabling solutions for the E in its B2B4E strategy.

CWT’s early positioning as a platform business, enhanced by strategic physical operations, underscores the Company’s commitment to developing the next generation of skills, closing the gap between talent supply and demand, and future-proofing not only its own, but also its customers’ potential. As a result of this differentiated approach, CWT’s global connections, coupled with local knowledge and the application of innovative, patented platform technology, continue to benefit customers while enabling CWT to deliver unparalleled, valuable and seamless travel experiences.

CWT is committed to remaining at the forefront of innovation, exceeding customer expectations long into the future, connecting people and helping businesses grow.

About Barings
Barings is a $382+ billion (as of 6/30/2021) global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.

About CWT
CWT is a Business-to-Business-for-Employees travel management platform. Companies and governments rely on us to keep their people connected – anywhere, anytime, anyhow – and, across six continents, we provide their employees with innovative technology and an efficient, safe, and secure travel experience.

Spotlight

For the climate of Chicago is typically continental with cold winters and warm summers, it is necessary to know about the perfect time to visit the city. As far as the weather is considered, the months of April, May, September and October are best to explore this elegant city. O'Hare International Airport is the main airport in Chicago and is served by many reputable international carriers connecting Chicago to the other parts of the world.


Other News

FCM strengthens financial position in response to covid-19

TravelDailyNews International | April 09, 2020

FCM Travel Solutions’ parent company Flight Centre Travel Group (FCTG) has announced a comprehensive package of initiatives to strengthen its balance sheet and liquidity position. These initiatives mean that FCTG has secured a total AUD $900 million through a mix of capital raising and new debt facilities. They complement previously announced cost reduction and cash preservation initiatives implemented by FCTG to help overcome the unprecedented travel and trading restrictions imposed by governments in response to the covid-19 pandemic. This will enable FCM Travel Solutions to increase its focus on key investments and to support all customers even during prolonged challenging business travel trading conditions. The move also allows the global TMC to execute its long-term strategy, expand its capabilities and service a significant number of new clients. The additional funding means the group’s total liquidity position now amounts to over AUD $2.3 billion.

Read More

Millennial business travellers push the future of corporate travel

Travel Daily Media | March 11, 2020

UK based travel techspert Travelport has published data which suggests millennial travellers are driving corporate travel towards a post-digital era in Asia Pacific (APAC) as their exceptionally high use of digital channels is being met by mounting frustrations with existing offerings. According to the study, more millennial business travellers in APAC use a mobile device when researching (68%) and booking (67%) a trip than in any other region worldwide. Use is second highest in North America (64% and 55%, respectively) and lowest in Europe (54% and 45%, respectively). One third (36%) of millennial business travellers in APAC even now claim they use mobile devices to both book and pay for ‘every trip’.

Read More

UgoVirtual Event Platform provides robust alternative to onsite meetings

TravelDailyNews International | March 04, 2020

UgoVirtual, a comprehensive online platform designed to meet the growing virtual travel and event management/hosting needs of the global travel and hospitality sectors, is providing a timely alternative to onsite events that have come under scrutiny in light of recent global health concerns surrounding the Novel Coronavirus (COVID-19). As cases of the virus continue to escalate worldwide, the hotel, travel and event industries are particularly vulnerable, due to their inherent reliance on physical travel, and are bracing for its economic impact.

Read More

Flight Centre Travel boosts tech platform with TPConnects investment

TravelDailyNews International | March 04, 2020

The Flight Centre Travel Group has strengthened its technology roadmap via a strategic investment in a business that is enhancing airline-travel agent connectivity. The company has secured a 22.47% interest in TPConnects Technologies LLC, a Dubai-based business with a next generation New Distribution Capability (NDC), Global Distribution System (GDS) and ONE Order based travel technology platform and software development resources. FLT has also entered into a commercial agreement with TPConnects to access Software as a Service (SaaS) functions and use its International Air Transport Association (IATA) NDC Certified Travel Aggregator platform, which aggregates NDC and GDS content.

Read More

Spotlight

For the climate of Chicago is typically continental with cold winters and warm summers, it is necessary to know about the perfect time to visit the city. As far as the weather is considered, the months of April, May, September and October are best to explore this elegant city. O'Hare International Airport is the main airport in Chicago and is served by many reputable international carriers connecting Chicago to the other parts of the world.

Resources

Events