Akin Gump Advises Ad Hoc Group of Senior Secured Noteholders on Travelex Restructuring

(London) – Akin Gump has advised an ad hoc group of senior secured noteholders in relation to the financial restructuring of Travelex, through which the group’s wholesale and outsourcing business and certain international businesses of Travelex have been transferred by way of a pre-pack administration sale to a new holding structure, New Travelex.

The transaction reduced the debt obligations of entities within New Travelex from over £360 million ($468 million) to £160 million ($208 million). £84 million ($110 million) of new liquidity was provided to New Travelex by certain of the senior secured noteholders in exchange for £99.2 million ($130 million) of new money notes and 100 percent of the equity in New Travelex.

As part of the transaction, existing senior secured noteholders received warrants in New Travelex representing 17.5 percent of the fully diluted share capital of New Travelex.

Given the severe liquidity crisis facing Travelex in light of financial difficulties brought about by COVID-19, the transaction was executed in a highly compressed timeline, with closing occurring within one month of signing the lock-up agreement.

Akin Gump advised an ad hoc group of senior secured noteholders throughout the process, negotiating and facilitating discussions with Travelex, New Travelex, Travelex’s relationship banks and other counterparties in connection with the lock-up agreement, the pre-pack administration, bridge financing, the new money notes, as well as the new corporate governance and warrants documents.

The Akin Gump team advising the ad hoc group of senior secured noteholders was led by financial restructuring partner Liz Osborne, and included finance partner Stephen Peppiatt, regulatory partner Ezra Zahabi, corporate partner Vance Chapman, tax partner Stuart Sinclair and competition partner Davina Garrod, supported by senior corporate counsel Tony Barnes, financial restructuring counsel Jessica Ling, international trade counsel Alaric Green, regulatory counsel Joe Hewton and corporate counsel Jasdeep Rai, and associates Sebastian Casselbrant-Multala, Mohammed Natha, Dougall Meston and Blake Sherry.

Akin Gump worked closely with PJT Partners to coordinate the implementation of this restructuring.

Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers and advisors in offices throughout the United States, Europe, Asia and the Middle East. Founded in 1945, the firm is proudly celebrating its 75th anniversary in 2020. #AkinGump75

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