Travelex Ends Sales Process After Receiving Unacceptable Offers

The company updated on the sale process, debt restructuring discussions and payment of its interest coupon.

Travelex, a currency service provider, has published a business update on Monday, in which the company revealed that it has not yet received any satisfactory offers for the Travelex Group.

In the business update, which was issued to keep all stakeholders of Travelex Holdings Limited and its subsidiaries in the loop, provided information on the sale process, debt restructuring discussions and payment of its interest coupon.

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According to the statement, the company received various non-binding offers for the Travelex Group during the first round, which then resulted in a short-list of parties being invited to participate in the second round of detailed diligence.

However, during the second round, the offers that were received by the Group were unacceptable to RCF Lenders and holders of Senior Secured Notes. Because of this, the sales process has been terminated.

In addition, separate discussions with RCF Lenders and an ad hoc group which represents more than two-thirds of Senior Secured Noteholders has continued in which a new long-term money financial restructuring of the Travelex Group has been discussed.

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Travelex reaches forbearance agreement

Furthermore, the company said that whilst the terms of its financial restructuring are in the process of negotiations and being agreed upon between lender groups, Travelex has received a temporary waiver and forbearance from more than 70 per cent of the beneficial holders of the Senior Secured Notes. 

“Subject to its terms, the Forbearance ensures that no enforcement action can be taken by Senior Secured Noteholders in relation to the non-payment of the €14.4 million interest coupon due on 15 May 2020, until expiry of the agreement on 2 July 2020,” the company said in its statement on Monday.

Commenting on the latest announcement, Travelex’s CEO, Tony D’Souza, said in the statement: “Travelex is a global leader in foreign exchange services.  This Forbearance Agreement provides the stability required in order for lenders to finalise their discussions on a debt restructuring which we expect will recapitalise the group’s balance sheet and inject new capital into the business. 

“Travelex remains extremely grateful to our customers and suppliers, and broader stakeholder base, for their continued support during this unprecedented and challenging period.  I would also like to thank all of the group’s employees who, in spite of these challenges, continue to work so tirelessly in support of delivering the business through Covid-19 and onto a stable platform for the future.” 

As Finance Magnates reported in May, Travelex announced that it no longer intended to pay the upcoming coupon payment of €14,400,000 due on the 15th of May 2020 on some of its senior notes.

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