Global Business Travel privately places $1 billion term loan B-3

By Sara Rosenberg

New York, Dec. 6 – Global Business Travel Group Inc. (GBT Group Services BV) privately placed a $1 billion covenant-lite term loan B-3 due December 2026, according to a market source.

Morgan Stanley Senior Funding Inc. is the bookrunner and administrative agent on the deal.

Proceeds will be used to refinance existing debt, for general corporate purposes, and to pay related fees, expenses and original issue discount.

Closing on the term loan is expected this month.

The term loan is being done in connection with the acquisition of the company by Apollo Strategic Growth Capital from American Express.

Once acquired by Apollo Strategic Growth Capital, a special purpose acquisition company, Global Business Travel will be a public company.

The transaction implies a pro forma market capitalization of about $5.3 billion and a pro forma enterprise valuation of around $5 billion for Global Business Travel and is expected to provide up to about $1.2 billion in gross proceeds, comprised of Apollo Strategic’s roughly $817 million of cash held in trust and an upsized $335 million fully committed common stock PIPE financing.

Current Global Business Travel common equity holders are expected to roll their existing equity holdings into the company.

Closing on the SPAC transaction is expected in the first half of 2022 subject to customary conditions, including approval of the business combination by Apollo Strategic’s shareholders and regulatory approvals.

Global Business Travel is a B2B travel platform.

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