Wyndham Receives Proceeds from Sale of Cendant's Travelport Business
Company Intends to Pay Down Outstanding Debt and Commence Share Buyback Program
PARSIPPANY, NJ, August 24, 2006. Wyndham Worldwide Corporation (NYSE:WYN) today announced that it is receiving $760 million in proceeds from Cendant Corporation upon closing of the sale of Cendant's Travelport business. Wyndham Worldwide intends to use the proceeds from the Travelport sale to pay down the Company's debt as follows:
o The immediate pay down in full of its revolving credit facility with a $310 million balance
o The immediate pay down of $375 million on its interim loan facility with an anticipated additional pay down of $75 million at the end of August
Wyndham's borrowings at the end of August, excluding approximately $1.3 billion of securitized vacation ownership debt, are expected to be approximately $1 billion, consisting of:
o Term loan with a $300 million balance
o Interim loan facility with a $350 million balance
o Existing bank borrowings and capital leases related to our business segments of approximately $360 million
The Company is rated Baa2 by Moody's and BBB by Standard & Poor's.
Wyndham Worldwide intends to begin an immediate stock repurchase program, which was announced on August 17, 2006, of up to $400 million of its common stock. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors, and the repurchases may be conducted in the open market or in privately negotiated transactions.
"The repayment of the Company's outstanding debt provides added flexibility, allowing us to preserve borrowing capacity and enhance liquidity," said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. "With the Travelport sale now complete, we are able to pursue our stock repurchase program, which we believe will both enhance shareholder value and demonstrate our confidence in the long-term value of Wyndham Worldwide."
As one of the world's largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses more than 6,400 franchised hotels and 535,000 hotel rooms worldwide. RCI Global Vacation Network offers its more than 3 million members access to approximately 55,000 vacation properties located in more than 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of more than 140 vacation ownership resorts serving more than 750,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 28,800 employees globally.
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