Bank of America has resigned as administrative agent under Travelport’s $2.79 billion L+500 bps first lien term loan due 2026, after a group of lenders holding at least a majority of the loan asked BofA to declare an event of default regarding the travel technology company’s decision to
designate two entities as unrestricted subsidiaries, according to sources.
According to the credit agreement reviewed by Reorg, lenders who hold a majority of the loans can, with the consent of the borrower (consent not to be unreasonably withheld) appoint a successor within 30 days after the retiring agent gives notice of its resignation. If no successor has been picked within the 30 days, the retiring agent can appoint a successor.
Separately, the company has received a fairness opinion from intellectual property merchant bank Ocean Tomo regarding transfer of IP to the two unrestricted subsidiaries, the sources said. The transferred assets, which include travel registration systems and patents, were valued at $1.15 billion, they added.
Travelport, sponsors Siris Capital and Elliott Management, Bank of America and Ocean Tomo did not immediately respond to requests for comment.
--Harvard Zhang