CWT 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.
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.

Michelle McKinney Frymire, CEO, said the company “is 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.”