Global Business Travel Group, Inc. (GBTG): restructuring charge — Global Business Travel Group secures $135M additional term loans; plans $20-25M restructuring

Global Business Travel Group, Inc.

Entered $135M incremental term loan under existing credit agreement; proceeds for Egencia integration, SME growth, efficiencies.
Revolving credit facility maturity extended from Aug 2023 to Sep 2026; benchmark rate switched from LIBOR to SOFR.
Interest rate margins increased: tranche B-3 term loans at SOFR + 5.25%-6.75%; revolving at SOFR + 4.75%-6.25%.
Restructuring to align organization around GMN and SME portfolios; expects $20-25M pre-tax charges (mostly severance) in 2023.
Restructuring substantially complete by Q2 2023.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Global Business Travel Group, Inc. amended revolving credit with Morgan Stanley Senior Funding, Inc., as administrative agent at SOFR plus a leverage-based margin ranging from 4.75% to 6.25% per annum maturing September 2026.

Instrument: revolving credit
Counterparty: Morgan Stanley Senior Funding, Inc., as administrative agent
Rate: SOFR plus a leverage-based margin ranging from 4.75% to 6.25% per annum
Maturity: September 2026
Event: amendment

Exact text from the filing

loans under the revolving credit facility will accrue interest at a variable interest rate based on SOFR plus a leverage-based margin ranging from 4.75% to 6.25% per annum. A SOFR floor of 1.00% will apply to the New Loans and each of the tranche B-3 term facility and the revolving credit facility.

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Global Business Travel Group, Inc. incurred term loan of $135 million with Morgan Stanley Senior Funding, Inc., as administrative agent at SOFR plus a leverage-based margin ranging from 5.25% to 6.75% per annum.

Instrument: term loan
Principal: $135 million
Counterparty: Morgan Stanley Senior Funding, Inc., as administrative agent
Rate: SOFR plus a leverage-based margin ranging from 5.25% to 6.75% per annum
Event: incurrence

Exact text from the filing

the Amendment, among other things, provides for additional term loans in an aggregate principal amount equal to $135 million (the “New Loans”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Global Business Travel Group, Inc. amended Amendment, Incremental Agreement and Reaffirmation valued at $135 million (effective 2023-01-25).

Action: amendment
Agreement: credit facility
Value: $135 million
Effective: 2023-01-25

Exact text from the filing

On January 25, 2023, certain subsidiaries of Global Business Travel Group, Inc. (the “Company”) entered into an Amendment, Incremental Agreement and Reaffirmation (the “Amendment”) in respect of that certain senior secured credit agreement, dated as of August 13, 2018, among the loan parties and lenders party thereto from time to time and Morgan Stanley Senior Funding, Inc., as administrative agent and as collateral agent (the “Senior Secured Credit Agreement”). The Amendment, among other things, provides for additional term loans in an aggregate principal amount equal to $135 million (the “New Loans”).

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Global Business Travel Group, Inc. announced a restructuring with charges of approximately $20 million to $25 million affecting global, customer needs-driven operating model focusing on global and multinational (GMN) and small and medium-sized enterprises (SME) portfolios.

Type: restructuring
Charge: approximately $20 million to $25 million
Affected area: global, customer needs-driven operating model focusing on global and multinational (GMN) and small and medium-sized enterprises (SME) portfolios

Exact text from the filing

The Company announced internally the organizational changes on January 24, 2023 and expects to incur total pre-tax restructuring and related charges of approximately $20 million to $25 million during the year ending December 31, 2023 in connection with the costs associated with implementing these changes, substantially all of which represent future cash expenditures for the payment of severance and related benefits costs.

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Global Business Travel Group, Inc. filing history →

Source: SEC EDGAR

accession 0001104659-23-006409

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