Wyndham Worldwide closes $1.5 billion revolving facility due 2018

By Marisa Wong

Madison, Wis., May 22 - Wyndham Worldwide Corp. said it closed a new $1.5 billion revolving credit facility to replace its existing $1 billion facility set to mature in July 2016.

The new facility matures on July 15, 2018.

The company can request to increase the size of the revolver, according to an 8-K filing with the Securities and Exchange Commission.

The facility has a $350 million sublimit for the issuance of letters of credit and a $100 million sublimit for swingline loans.

Interest is equal to Libor plus 90 basis points to 150 bps, depending on the company's credit rating.

The company is required to pay a facility fee of 10 bps to 25 bps, also based on its credit rating.

The credit agreement contains some financial covenants, including a minimum consolidated interest coverage ratio of at least 2.5 times and a maximum consolidated leverage ratio of 4 times or less (provided that the consolidated leverage ratio may be increased for a limited period to 5 times in connection with an acquisition).

In connection with the new credit agreement, Wyndham also established a A$250 million subfacility for revolving loans made in U.S. dollars or Australian dollars, the filing noted.

Simultaneously with the closing of the revolver, the company upsized its existing commercial paper program to $750 million from $250 million, according to a press release.

"This financing is another example of our strong record of capital markets execution. The transaction extends the credit facility to a five-year maturity and strengthens our liquidity profile through favorable pricing terms," chief financial officer Tom Conforti said in the press release.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch acted as joint bookrunners for the new facility. Bank of America, NA is the administrative agent; JPMorgan Chase Bank, NA is the syndication agent; and Bank of Nova Scotia, Deutsche Bank Securities Inc., Royal Bank of Scotland plc, Credit Suisse AG, Cayman Islands Branch, Compass Bank, U.S. Bank NA and SunTrust Bank are co-documentation agents.

The hospitality company is based in Parsippany, N.J.

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