PARSIPPANY, N.J., March 31, 2021 /PRNewswire/ -- Wyndham Hotels
& Resorts, Inc. (NYSE: WH) announced today that
on April 15, 2021 (the "Redemption
Date") it will redeem all $500
million aggregate principal amount of its outstanding 5.375%
senior notes due April 15, 2026 (the
"Notes").
The Notes will be redeemed on the Redemption Date at a
redemption price equal to the sum of 102.688% of the aggregate
principal amount of the Notes plus accrued and unpaid interest up
to, but excluding, the Redemption Date. On and after the
Redemption Date, the Notes will no longer be deemed outstanding and
interest will cease to accrue.
The Company expects the redemption of the Notes to reduce its
annual cash interest expense by approximately $27 million. There is no expected
impact on the Company's net debt position as the Company primarily
intends to use available cash to redeem the Notes. Coupled with the
issuance of 4.375% senior notes in August of 2020, this redemption
effectively returns the Company to pre-pandemic debt levels while
extending $500 million of maturity by
approximately 2.5 years at a 100 basis point (or 19%) lower
interest rate.
This announcement is for information purposes only and does not
constitute an offer to purchase Notes, a solicitation of an offer
to sell Notes or a solicitation of consents of holders of the Notes
and shall not be deemed to be an offer to purchase, a solicitation
of an offer to sell or a solicitation of consents with respect to
any of the Company's securities or any securities of its
subsidiaries or affiliates.
About Wyndham Hotels & Resorts
Wyndham Hotels
& Resorts (NYSE: WH) is the world's largest hotel franchising
company by the number of properties, with over 8,900 hotels across
nearly 95 countries on six continents. Through its network of
approximately 796,000 rooms appealing to the everyday traveler,
Wyndham commands a leading presence in the economy and midscale
segments of the lodging industry. The Company operates a
portfolio of 20 hotel brands, including Super 8®, Days Inn®,
Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®,
Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham
Hotels & Resorts is also a leading provider of hotel management
services. The Company's award-winning Wyndham Rewards loyalty
program offers 86 million enrolled members the opportunity to
redeem points at thousands of hotels, vacation club resorts and
vacation rentals globally. For more information, visit
www.wyndhamhotels.com. The Company may use its website as a means
of disclosing material non-public information and for complying
with its disclosure obligations under Regulation FD. Disclosures of
this nature will be included on the Company's website in the
Investors section, which can currently be accessed at
www.investor.wyndhamhotels.com. Accordingly, investors should
monitor this section of the Company's website in addition to
following the Company's press releases, filings submitted with the
Securities and Exchange Commission and any public conference calls
or webcasts.
Forward-Looking Statements
This press release
contains "forward-looking statements" within the meaning of federal
securities laws, including statements related to the Company's
Notes redemption. Forward-looking statements include those
that convey management's expectations as to the future based on
plans, estimates and projections at the time Wyndham Hotels makes
the statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Wyndham Hotels to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, without
limitation, general economic conditions; the continuation or
worsening of the effects from the COVID-19 pandemic, its scope,
duration and impact on the Company's business operations, financial
results, cash flows and liquidity, as well as the impact on the
Company's franchisees and property owners, guests and team members,
the hospitality industry and overall demand for travel; the success
of the Company's mitigation efforts in response to the COVID-19
pandemic; the Company's performance in any recovery from the
COVID-19 pandemic; the performance of the financial and credit
markets; the economic environment for the hospitality industry;
operating risks associated with the hotel franchising and
management businesses; the Company's relationships with franchisees
and property owners; the impact of war, terrorist activity,
political instability or political strife; concerns with or threats
of pandemics, contagious diseases or health epidemics, including
the effects of the COVID-19 pandemic and any resurgence or
mutations of the virus and actions governments, businesses and
individuals take in response to the pandemic, including
stay-in-place directives and other travel restrictions; risks
related to restructuring or strategic initiatives; risks related to
the Company's relationship with CorePoint Lodging; the Company's
ability to satisfy obligations and agreements under its outstanding
indebtedness, including the payment of principal and interest and
compliance with the covenants thereunder; risks related to the
Company's ability to obtain financing and the terms of such
financing, including access to liquidity and capital as a result of
COVID-19; and the Company's limitations related to share
repurchases and ability to pay dividends under its credit facility
and the timing and amount of any future dividends, as well as the
risks described in the Company's most recent Annual Report on Form
10-K filed with the Securities and Exchange Commission and any
subsequent reports filed with the Securities and Exchange
Commission. The Company undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, subsequent events or otherwise.
Contacts
|
|
Investors:
Matt
Capuzzi
Senior Vice
President, Investor Relations
973
753-6453
ir@wyndham.com
|
Media:
Dave DeCecco
Group Vice President,
Global Communications 973 753-6590
WyndhamHotelsNews@wyndham.com
|
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SOURCE Wyndham Hotels & Resorts