Travelex announces that it has completed the raising of £20 million of additional funding following the issuance of an additional number of new money notes.

As FX News Group has reported, on February 8, 2021, Travelex said it launched a consent solicitation in connection with the issuance of an additional number of New Money Notes with net value of £20 million. The aim is to provide the company with fresh liquidity as Travelex extends its business perimeter to include legacy retail platforms and to fund working capital in anticipation of a return of consumer travel.

Following the announcement made by Travelex Issuerco Limited on February 8, 2021, Travelex confirmed on Friday (Feb 26, 2021) the conclusion of the raising. The company has also now replaced Travelex Issuerco Limited as the issuer of all existing new money notes previously issued by Travelex Issuerco Limited.

The Additional New Money Notes have the same terms and conditions and ISIN (XS2248458049) as the existing new money notes. An application will shortly be made for the Additional New Money Notes to be admitted to trading on the Vienna MTF (as operated by the Vienna Stock Exchange).

Earlier in February, Travelex explained that, since the finalisation of the restructuring and recapitalisation of Initial FundCo in August 2020, the impact of the Covid-19 pandemic has intensified globally and continues to delay the recovery of the international travel market. The business has published an updated view on trading and liquidity, underpinned by external data sources demonstrating a more gradual recovery profile, and additional cost savings initiatives to help conserve liquidity into 2021 when recovery is now expected to occur.

On the updated projections, £45 million of additional funding is required to ensure the business is appropriately capitalised to rebuild working capital for when trade returns, with OFC businesses being transferred into the group projected to increase the business perimeter by EBITDA of £28m (or c.48% vs previous Business Plan FY22 EBITDA) against £45m (c.54%) projected increase in New Money Notes.

A significant transformation and restructuring exercise was undertaken in 2020, Travelex says. The Group was split in two, Initial Fundco (IFC) and Optional Fundco (OFC), to protect the most resilient parts of the business and warehouse the retail operations that are forecast to have a slower recovery.

Regulatory approval has now been received to transfer entities in the following countries to New Travelex: Australia, China, New Zealand, Oman, Bahrain, Singapore and Hong Kong. Approvals are in progress still but expected to be finalised in the coming weeks for Nigeria, Qatar, Malaysia, Thailand, Turkey, UAE, UK and Brazil.