Travel + Leisure amends $1 billion credit facility, extends maturity to June 2030
Travel + Leisure Co. closed a Seventh Amendment to its Credit Agreement that replaced its $1.0 billion revolving credit facility, which was due in October 2026, with a new $1.0 billion facility maturing in June 2030. The amendment lowers borrowing spreads by 25 basis points at all pricing levels, eliminates a credit spread adjustment, and reduces the minimum interest coverage ratio from 2.50:1.00 to 2.00:1.00, giving the company more covenant flexibility and a longer runway on its credit line.
- New $1.0 billion revolving credit facility matures in June 2030, replacing the facility due October 2026
- Borrowing spread reduced by 25 basis points at all pricing levels; spread range now 1.50% to 2.00%
- Credit spread adjustment eliminated, a reduction of 11.45 to 71.51 basis points depending on tenor
- Minimum Interest Coverage Ratio lowered from 2.50:1.00 to 2.00:1.00, tested at each fiscal quarter end