American Express Global Business Travel Reduces Interest Rate and Increases Liquidity
American Express Global Business Travel, which is operated by Global Business Travel Group, Inc. (NYSE:GBTG) ("Amex GBT" or the "Company"), a leading software and services company for travel, expense, and meetings & events, today announced that it has successfully refinanced and upsized its senior secured first lien term loan facility.
Transaction Highlights:
- Reduces interest rate. With the successful refinancing, the Company achieved a 50 basis point reduction in its borrowing rate, with the amended term loan priced at SOFR plus 2.00%.
- Increases liquidity. Strong demand enabled the Company to raise an incremental $100 million, with the term loan facility upsized to $1.486 billion, maturing in July 2031.
- Enhances financial flexibility. The upsized term loan facility provides the Company with enhanced financial flexibility to invest to drive organic and inorganic growth, productivity and margin expansion, including continued investments in AI.
"Refinancing and upsizing at par demonstrates the strength of our company performance and the confidence our blue chip debt investors have in our outlook," said Karen Williams, Chief Financial Officer of Amex GBT. "The improved terms are best-in-class for companies with our credit rating. We were opportunistic with an advantageous credit market to increase capacity, providing us with greater flexibility to integrate CWT and execute against our levers for growth, margin expansion and cash generation while maintaining a strong balance sheet."
About American Express Global Business Travel
American Express Global Business Travel (Amex GBT) is a leading software and services company for travel, expense, and meetings & events. We have built the most valuable marketplace in travel with the most comprehensive and competitive content. A choice of solutions brought to you through a strong combination of technology and people, delivering the best experiences, proven at scale. With travel professionals and business partners in more than 140 countries, our solutions deliver savings, flexibility, and service from a brand you can trust – Amex GBT.
Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on LinkedIn and Instagram.
Forward-Looking Statements
Certain statements made in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this release are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks, uncertainties and other factors: (1) changes to projected financial information or our ability to achieve our anticipated growth rate and execute on industry opportunities; (2) our ability to maintain our existing relationships with customers and suppliers and to compete with existing and new competitors; (3) various conflicts of interest that could arise among us, affiliates and investors; (4) our success in retaining or recruiting, or changes required in, our officers, key employees or directors; (5) factors relating to our business, operations and financial performance, including market conditions and global and economic factors beyond our control; (6) the impact of geopolitical conflicts, including the war in Ukraine and the conflicts in the Middle East, as well as related changes in base interest rates, inflation and significant market volatility on our business, the travel industry, travel trends and the global economy generally; (7) the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; (8) the effect of a prolonged or substantial decrease in global travel on the global travel industry; (9) political, social and macroeconomic conditions (including the widespread adoption of teleconference and virtual meeting technologies which could reduce the number of in-person business meetings and demand for travel and our services); (10) the effect of legal, tax and regulatory changes; (11) the impact of any future acquisitions including the integration of any acquisition; (12) costs related to, or the inability to recognize the anticipated benefits of our merger (the "Merger") with CWT Holdings, LLC ("CWT"); (13) risks related to the business of CWT or unexpected liabilities that arise in connection with the transaction or the integration of CWT including our ability to apply our procedures regarding internal controls over financial reporting to CWT; (14) the outcome of any legal proceedings that may be instituted against the Company in connection with the Merger; and other factors detailed in the Company's Form 10-K filed with the SEC on March 7, 2025, and in the Company's other SEC filings. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Disclaimer
An investment in Global Business Travel Group, Inc. is not an investment in American Express. American Express shall not be responsible in any manner whatsoever for, and in respect of, the statements herein, all of which are made solely by Global Business Travel Group, Inc.
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Investors:
Jennifer Thorington
Vice President Investor Relations
investor@amexgbt.com
Media:
Megan Kat
Head of Global Communications and Public Affairs
megan.kat@amexgbt.com