A £90 million refinancing deal has been concluded by Travelex, a market leader in the field of international travel money services. This arrangement will support the company’s further growth. The £90 million facility has a five-year term. It will be used to pay off the current £50 million term loan facility, redeem £12 million in New Money Notes and stapled equity, and provide capital for company investment.
While its wholesale banknotes business serves central banks and significant financial institutions around the world, Travelex’s card and cash-based retail business operates more than 1,100 bureaux and 900 ATMs in over 20 countries. Travel demand, especially in emerging markets, is now 88.2% of pre-Covid levels, and Travelex is working to increase investment in both its digital transformation and future product innovation. Travelex is also working to expand its retail offering and forge new wholesale relationships.
Travelex has recently introduced a number of new products, including the retail FX industry’s first ATM click-and-collect product and a new automated currency kiosk at Heathrow, in addition to expanding its pre-paid Travel Money Card in the UK and Japan. Over the past 18 months, Travelex has also opened dozens of new bureaux and created thousands of new jobs.
The CEO of Travelex, Richard Wazacz, said: “We are pleased to have received this finance, which is a significant vote of confidence in both the business and our future goals. This finance will allow Travelex to take advantage of the numerous opportunities this presents given that the travel industry has recovered and market indicators indicate to strong growth for the foreseeable future.
“The refinancing marks a significant point in the Group’s turnaround following the pandemic,” said Mike Rees, chairman of Travelex. The funding offers security and the freedom to focus on growth in a changing industry.
Travelex received financial advice from PwC.
Source- Travel daily