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Published on : Monday, June 27, 2016
Under the amended terms of Travelport’s credit agreement, the interest rate on its terms loans has been reduced by 75 basis points to LIBOR plus 4.00% (LIBOR floor of 1.00% remains unchanged) from LIBOR plus 4.75%. The repricing is expected to generate annualized cash interest savings of approximately $18 million based on the current principal balance of $2.34 billion outstanding. The term loans hold no significant maturities before September 2021.
Gordon Wilson, President and CEO of Travelport, commented: “The successful repricing of our term loans underscore Travelport’s commitment to financial health and flexibility, and this action will further strengthen our free cash flow generation.”
Travelport also notes the outcome of the United Kingdom referendum on EU membership and highlights the following key points about its business:
Mr. Wilson continued, “Our business operations are based on a highly resilient transactional model. We benefit from a diverse and balanced global footprint in addition to significant growth engines, especially around mobile commerce and B2B payments. We reaffirm the financial guidance that we issued in February, 2016 and look forward to announcing our second quarter earnings results and discussing more detail on our performance on August 4, 2016.”
Outlook and Financial Guidance
Travelport reaffirms the following outlook for the full year 2016:
|(in $ millions, except per share amounts)||FY 2016 Guidance||Growth Rate|
|Net revenue||$2,350 – $2,400||6% – 8%|
|Adjusted EBITDA||$565 – $580||6% – 8%|
|Adjusted Net Income||$140 – $150||15% – 23%|
|Adjusted Income per Share – diluted||$1.12 – $1.20||12% – 20%|
|Adjusted Free Cash Flow||$145 – $165||8% – 23%|
This guidance assumes spot foreign exchange rates as of June 24, 2016, together with the impact of foreign exchange rate hedges undertaken during 2015 as part of our rolling hedging program. For future periods, we are unable to provide a reconciliation of non-GAAP financial measures to relevant GAAP measures guidance because we do not provide guidance for equity-based compensation expense, provision for income taxes, interest income, interest expense, litigation and related costs, and other items, as certain of these items are out of our control that may be incurred in the future and/or cannot be reasonably predicted. Our quarterly and annual results as reported in these non-GAAP financial measures will be reconciled to the most directly comparable GAAP financial measures when we report such actual results.