Carlson Wagonlit plans $800 million in new credit facilities for recapitalization, Navigant purchase

By Sara Rosenberg

New York, May 17 - Carlson Wagonlit Travel has received commitments for $800 million in new credit facilities as part of its proposed recapitalization and, thereafter, acquisition of Navigant International Inc., according to a PRE 14A filed with the Securities and Exchange Commission Wednesday.

JPMorgan, Lehman Brothers and Morgan Stanley are the lead banks on the deals.

For recapitalization purposes, the company will be getting a $525 million credit facility, consisting of a $325 million term loan and a $200 million revolver, the filing said. There is also a commitment for a mezzanine bridge facility in euros in the amount equivalent to $165 million.

For the Navigant acquisition, the company will be obtaining a $275 million term loan, the filing added. There is also a commitment for a $180 million mezzanine bridge facility.

Under the recapitalization, which must occur before the Navigant acquisition can be completed, Carlson Companies and One Equity Partners agreed to acquire the 50% interest in Carlson Wagonlit held by Accor Group for $465 million. Upon completion of this transaction, Carlson will increase its stake in Carlson Wagonlit to 55%, while One Equity will own 45%.

Under the Navigant purchase agreement, Carlson Wagonlit will purchase all outstanding shares of Navigant for $16.50 per share. The aggregate transaction value, including the assumption of debt, is about $510 million.

The recapitalization is subject to regulatory approval.

The acquisition, which is expected to close in second half of this year, is subject to approval by the holders of a majority of Navigant's stock, regulatory approvals, completion of financing and other customary conditions.

Carlson Wagonlit is a Minneapolis-based business travel management company. Navigant is a Denver-based provider of travel management services.

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