CWT Announces Recapitalization Agreement with Holders of 'Over 90%' of Company's Outstanding Debt; Agreement Includes $350M in New Equity Capital, Replacing $1.5B in Existing Debt with $625M in New 1L Debt

Relevant Document:
Company Announcement

In a release on its website, CWT announced today 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.

The company says it "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."

Kirkland & Ellis LLP is serving as legal adviser, Houlihan Lokey is serving as financial adviser, AlixPartners LLP is serving as restructuring adviser and Shearman & Sterling LLP is serving as corporate finance counsel to CWT.

Stroock & Stroock & Lavan LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal advisors and Rothschild & Co. and Evercore are serving as financial advisors to the groups of CWT's noteholders.