Standard & Poor has recently downgraded Travelex Holdings Ltd, giving it the rating of “Selective Default.” This occurred do the FX services provider having failed to make an interest payment on its €360 million Senior Secured Notes. This occurred on the 15th of May, 2020, and the company has now entered a grace period of 30 days in order to seek forbearance and waiver arrangements with its various lenders.
Downgrades, With Some Staying The Same
S&P has since speculated that Travelex will fail to make the interest payment it is due on the notes within that grace period of 30 days. Thus, the firm has concluded to cut the long-term issuer credit rating it had on Travelex, downgrading it from “CC” to “SD,” or Selective Default.
As it stands now, S&P had also lowered its issue rating on the €360 million senior secured notes that are due in 2022, issued by Travelex Financing PLC. They changed the rating from “C” to “D,” or Default. However, the notes’ recovery rating has remained unchanged, staying at “5”. Furthermore, the €90 million super senior revolving credit facility, or RCF, has remained unchanged, staying at the “CCC” issue and the “1” recovery rating.
Announcing Refraining From Payments
It was back earlier this month when Travelex Financing PLC stated that it no longer had the intention of paying the coupon payment of €14,400,000 that was due on the 15th of May, 2020, expected by the Senior Secured Notes. As it stands now, Travelex Group is seeking to use this grace period to start seeking the relevant forbearance and/or waiver arrangements from its various Noteholders
Back then, Travelex stated that discussions were already in the process of trying to find a long-term solution in regards to specific lenders and advisers to the Group. The statement highlighted that certain bondholders represented over 66% of the outstanding face value regarding the Senior Secured Notes and their advisers, as well. Furthermore, Travelex is in the process of actively seeking offers for the Travelex Group from various bidders that may show interest.
Trying To Sell The Company To Interested Parties
Back in April of 2020, Travelex had announced that the Board of Travelex Holdings Limited had concluded to seek offers for the Travelex Group. This stands as part of the company’s assessment of strategic options in order to maximize the value for the stakeholders of the company.
Things seem grim for the company, but with any luck, all the relevant parties will get an adequate return of their investments, and that the matter as a whole can hopefully be put behind those involved quickly, and concisely.