PARSIPPANY, N.J., (March 31, 2010) — Wyndham Worldwide Corporation (NYSE:WYN) announced today the closing of a new $950 million revolving credit facility to replace its existing $900 million facility, which had been scheduled to mature in July 2011. The maturity of the new facility is October 1, 2013. The Company also announced today the early repayment of its $300 million term loan facility due in July 2011.
In February 2010, Wyndham Worldwide announced the issuance of $250 million of senior unsecured notes due 2020 that bear interest at a rate of 7.38%. The Company used a portion of the proceeds of that offering to repay and terminate its Australian credit facility, which had an outstanding balance of $153 million. There is no change to the Company’s overall corporate debt balance as a result of the above transactions.
“With these actions, we have further strengthened our capital structure, liquidity position and overall investment-grade profile,” said Tom Conforti, chief financial officer of Wyndham Worldwide Corporation. “We are very pleased with the execution that we achieved on our new credit facility and would like to thank the 17 banks involved. We believe their participation underscores the banking community’s confidence in Wyndham Worldwide.”
Wyndham Worldwide will incur first quarter 2010 early extinguishment pre-tax charges of approximately $16 million primarily associated with the early repayment of the $300 million term loan facility.
J.P. Morgan Securities Inc. and Banc of America Securities LLC acted as Joint Bookrunners for the new revolving credit facility.
About Wyndham Worldwide Corporation
As one of the world’s largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses approximately 7,110 franchised hotels and approximately 597,700 hotel rooms worldwide. Wyndham Exchange and Rentals offers leisure travelers, including its 3.8 million members, access to over 65,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of over 155 vacation ownership resorts serving over 820,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,000 employees globally.
For more information about Wyndham Worldwide, please visit the company’s website at www.wyndhamworldwide.com
SOURCE: Wyndham Worldwide