UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

Form 8-K

 

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported) June 27, 2016 (June 23, 2016)

 

 

 

Travelport Worldwide Limited

(Exact name of Registrant as specified in its charter)

 

 

 

Bermuda 001-36640 98-0505105
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation)   Identification Number)

 

Axis One, Axis Park

Langley, Berkshire, SL3 8AG,
United Kingdom

(Address of principal executive
office)

 

Registrant's telephone number, including area code + 44-1753-288-000

 

N/A

(Former name or former address if changed since last
report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

     

 

 

Item 1.01 Entry into a Material Definitive Agreement.

 

On June 23, 2016, we entered into an amendment (the “Amendment”) among Travelport Finance (Luxembourg) S.a.r.l., Travelport Limited, the Term B Lenders (as defined in the Amendment) and Deutsche Bank AG New York Branch to our credit agreement, dated as of September 2, 2014 (as amended by the Incremental Amendment to Credit Agreement, dated as of January 16, 2015, the “Credit Agreement”). The Amendment, among other things, (i) amends the applicable rates to 3.00% per annum, in the case of base rate loans, and 4.00% per annum, in the case of LIBOR loans and (ii) resets the 1% premium on the repricing of the term loans under the Credit Agreement for a period of six months. The interest rate per annum applicable to the term loans remains based on a fluctuating rate of interest, at our election, equal to in the case of LIBOR loans, (i) LIBOR, plus the applicable rate or, in the case of base rate loans, (ii) the sum of the applicable rate and the greatest of (A) the federal funds effective rate plus 0.5%, (B) the rate as publicly announced from time to time by Deutsche Bank as its “prime rate” and (C) one-month LIBOR plus 1.00%.  In addition, the term loans remain subject to a floor of 2.00% per annum, in case of base rate loans, and 1.00% per annum, in the case of LIBOR loans.

 

Certain of the agents and lenders party to the Amendment, and their respective affiliates, have performed, and may in the future perform, various commercial banking, investment banking and other financial advisory services for us and our subsidiaries for which they have received, and will receive, customary fees and expenses.

 

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the text of such document, which is filed as Exhibit 10.1 hereto and is incorporated by reference herein.

 

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

 

The information described above under “Item 1.01. Entry into a Material Definitive Agreement” is incorporated herein by reference.

 

Item 7.01 Regulation FD Disclosure.

 

On June 27, 2016, we issued a press release reaffirming our financial guidance for the full year 2016, announcing the successful repricing of our term loans as discussed in Item 1.01 above and addressing the outcome of the United Kingdom referendum on UK membership, as discussed in detail in the press release attached hereto as Exhibit 99.1.

 

The information in this item, including Exhibit 99.1, is being furnished, not filed. Accordingly, the information in this item will not be incorporated by reference into any registration statement filed by Travelport Worldwide Limited under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference therein.

 

Item 9.01 Financial Statements and Exhibits.

 

(d)  Exhibits.

 

The following exhibits are filed as part of this report:

 

Exhibit No.   Description
     
10.1   Amendment No. 2 to Credit Agreement, dated as of June 23, 2016 among Travelport Finance (Luxembourg) S.a.r.l., as borrower, Travelport Limited, the Term B Lenders and Deutsche Bank AG New York Branch.
     
99.1  

Press Release dated June 27, 2016.

 

     

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    TRAVELPORT WORLDWIDE LIMITED
     
  By: /s/ Rochelle Boas
   

Rochelle Boas

Senior Vice President and Secretary

 

Date: June 27, 2016

 

     

 

 

TRAVELPORT WORLDWIDE LIMITED

CURRENT REPORT ON FORM 8-K

Report Dated June 27, 2016 (June 23, 2016)

 

EXHIBIT INDEX

 

10.1 Amendment No. 2 to Credit Agreement, dated as of June 23, 2016 among Travelport Finance (Luxembourg) S.a.r.l., as borrower, Travelport Limited, the Term B Lenders and Deutsche Bank AG New York Branch.
   
99.1

Press Release dated June 27, 2016.

 

     

 

Exhibit 10.1

 

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT

 

This AMENDMENT NO. 2 TO CREDIT AGREEMENT, dated as of June 23, 2016 (this “ Agreement ”), among Travelport Finance (Luxembourg) S.à r.l. , a private limited liability company ( société à +responsabilité limitée ) incorporated and existing under the laws of Luxembourg, registered with the Luxembourg Trade and Companies Register under number RCS B B151012, having its registered office at 2-4, rue Eugène Ruppert, L-2453 Luxembourg and with a share capital of USD 180,000 (the “ Borrower ”), TRAVELPORT LIMITED, a company incorporated under the laws of Bermuda (“ Holdings ”), the Term B Lenders (as defined in the Amended Credit Agreement (as defined below)) and DEUTSCHE BANK AG NEW YORK BRANCH , as Administrative Agent and as Collateral Agent.

 

PRELIMINARY STATEMENTS

 

WHEREAS , reference is made to that certain Credit Agreement, dated as of September 2, 2014 (as amended by the Incremental Amendment to Credit Agreement, dated as of January 16, 2015, as in effect immediately prior to the initial funding of the Term B Loans, the “ Existing Credit Agreement ”; the Existing Credit Agreement as amended by this Agreement, the “ Amended Credit Agreement ”; capitalized terms used but not defined herein having the meaning provided in the Amended Credit Agreement), among the Borrower, Holdings, the Lenders from time to time party thereto, the Guarantors from time to time party thereto, the Administrative Agent and the Collateral Agent;

 

WHEREAS , pursuant to Section 2.15 of the Existing Credit Agreement, the Borrower has requested that the Existing Credit Agreement be amended so as to create a new class of Term Loans as Refinancing Term Loans in the form of Term B Loans having identical terms with and having the same rights and obligations under the Existing Credit Agreement and the other Loan Documents as the Initial Term Loans, except as such terms are amended hereby, in an aggregate principal amount of $2,339,375,000, the proceeds of which shall be used to prepay in full the Initial Term Loans outstanding under the Existing Credit Agreement immediately prior to the effectiveness of this Agreement;

 

WHEREAS , each Term Lender that executes and delivers a consent to this Agreement substantially in the form of Exhibit A hereto (a “ Consent ”) shall be deemed (i) to have agreed to the terms of this Agreement and the Amended Credit Agreement, (ii) to have agreed to exchange or convert (either by cashless roll or post-closing settlement, as further described in the Consent) all of its Initial Term Loans with Term B Loans in an equal principal amount; and (iii) upon the Amendment No. 2 Effective Date (as defined below), to have exchanged or converted (as further described in the Consent) all of its Initial Term Loans into Converted Initial Term Loans in an equal principal amount (or such lesser amount allocated to it by the Administrative Agent) in accordance with Section 2.01(c)(i) of the Amended Credit Agreement, and such Lender shall thereafter become a Term B Lender;

 

WHEREAS , each Term Lender that makes the appropriate election in its Consent will be also deemed to have agreed to make on the Amendment No. 2 Effective Date, Increased Term B Loans in the amount specified by such Term Lender in its Consent (subject to allocation

 

     

 

 

by the Administrative Agent, but in no event greater than the amount such Term Lender committed to make as Increased Term B Loans); and

 

WHEREAS , each Person that executes and delivers a joinder to this Agreement substantially in the form of Exhibit B (a “ Joinder ”) in the capacity as an “Additional Term B Lender”, will, by the fact of such execution and delivery, be deemed (i) to have consented to the terms of this Agreement and the Amended Credit Agreement and (ii) to have committed to make Additional Term B Loans to the Borrower on the Amendment No. 2 Effective Date, in the amount specified by such Additional Term B Lender in the Joinder (subject to allocation by the Administrative Agent, but in no event greater than the amount such Person committed to make as Additional Term B Loans), the proceeds of which will be used, together with the proceeds of the Increased B Term Loans, by the Borrower to repay in full the aggregate outstanding principal amount of Non-Converted Initial Term Loans.

 

NOW , THEREFORE , in consideration of the undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.            Amendments to the Existing Credit Agreement .  The Existing Credit Agreement is, as of the Amendment No. 2 Effective Date, hereby amended as follows:

 

(a)       Amendments to Section 1.01:

 

(i)        The definition of “Applicable Rate” is hereby amended by (i) deleting “and” at the end of clause (b), (ii) replacing the period at the end of clause (c) with “; and” and (iii) adding the following as a new clause (d):

 

“(d)   with respect to Term B Loans, (i) for Eurocurrency Rate Loans, 4.00% and (y) for Base Rate Loans, 3.00%.”

 

(ii)       The definition of “Base Rate” is hereby amended by replacing the proviso in the first sentence with the following:

 

provided that for the avoidance of doubt, the Eurocurrency Rate for any day shall be LIBOR, at approximately 11:00 a.m. (London time) two Business Days prior to such day for deposits in Dollars with a term of one month commencing on such day; it being understood that, for the avoidance of doubt, solely with respect to the Initial Term Loans and Term B Loans, the Base Rate shall be deemed to be not less than 2.00% per annum.”

 

(iii)      The definition of “Eurocurrency Rate” is hereby amended by replacing the last proviso thereto with the following: “ provided that solely with respect to the Initial Term Loans and Term B Loans, the Eurocurrency Rate shall be deemed to not be less than 1.00% per annum in all cases.”

 

(iv)      Clause (i) of the definition of “Maturity Date” is hereby amended and restated in its entirety to read as follows:

 

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“(i) with respect to (A) the Initial Term Loans, the date that is seven years after the Closing Date and (B) any Term B Loans, September 2, 2021,”

 

(v)       The definition of “Term Borrowing” is hereby amended by inserting at the end thereof, the following new sentence:

 

“Following the Amendment No. 2 Effective Date, “Term Borrowing” shall include each Term B Borrowing.”

 

(vi)      The definition of “Refinancing Term Loans” is hereby amended by inserting at the end thereof, the following new sentence:

 

“Following the Amendment No. 2 Effective Date, “Refinancing Term Loans” shall include Term B Loans.”

 

(vii)     The definition of “Repricing Transactions” is hereby amended by replacing each instance of “Initial Term Loans” with “Term B Loans”.

 

(viii)    The following definitions are added where alphabetically appropriate to read as follows:

 

Additional Term B Commitment means, as to each Additional Term B Lender, its obligation to make an Additional Term B Loan to the Borrower on the Amendment No. 2 Effective Date, in the amount set forth in the Joinder (as defined in Amendment No. 2) executed and delivered by such Additional Term B Lender (subject to allocation by the Administrative Agent, but in no event greater than the amount set forth by such Additional Term B Lender in the Joinder).

 

Additional Term B Lender means a Person with an Additional Term B Commitment to make Additional Term B Loans to the Borrower on the Amendment No. 2 Effective Date pursuant to Section 2.01(c)(ii).

 

Additional Term B Loan ” means a Term Loan that is made pursuant to Section 2.01(c)(ii).

 

Amendment No. 2 ” means Amendment No. 2 to this Agreement dated as of the Amendment No. 2 Effective Date.

 

Amendment No. 2 Effective Date ” means June 23, 2016, the date of effectiveness of Amendment No. 2.

 

Converted Initial Term Loans ” has the meaning set forth in Section 2.01(c)(i).

 

Increased Term B Loans ” means the Term B Loans committed to be made by a Term Lender on the Amendment No. 2 Effective Date, in addition to its Term B Loans that are Converted Initial Term Loans, in the amount specified by such

 

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Term Lender in its Consent (subject to allocation by the Administrative Agent, but in no event greater than the amount such Term Lender committed to make as Increased Term B Loans in its Consent).

 

Non-Converted Initial Term Loan ” means each Initial Term Loan (or any portion thereof) that is not exchanged or converted into Converted Initial Term Loans pursuant to Section 2.01(c)(i).

 

Term B Borrowing ” means a borrowing consisting of Term B Loans of the same Type and, in the case of Eurocurrency Rate Loans, having the same Interest Period made by each of the Term B Lenders pursuant to Section 2.01(c).

 

Term B Lender ” means Additional Term B Lenders, a Lender that provides an Increased Term B Loan or a Lender that holds Converted Initial Term Loans.

 

Term B Loan ” means Additional Term B Loans, Increased Term B Loans and Converted Initial Term Loans.

 

(b)           Amendment to Section 2.01.   Section 2.01 is hereby amended by adding the following paragraph (c) to such section:

 

“(c) (i) Subject to the terms and conditions hereof and of Amendment No. 2, each Term Lender that executes and delivers a Consent (as defined in Amendment No. 2) severally agrees to exchange or convert all of its Initial Term Loans outstanding on the Amendment No. 2 Effective Date into a like principal amount of Term B Loans on the Amendment No. 2 Effective Date either by cashless roll or post-closing settlement, as further described in such Lender's Consent (such exchanged or converted Initial Term Loans, the “ Converted Initial Term Loans ”). All Term B Loans that constitute Converted Initial Term Loans will be of the Type and have the Interest Period (if applicable) specified in the Committed Loan Notice delivered in connection therewith. All accrued and unpaid interest on the Converted Initial Term Loans to, but not including, the Amendment No. 2 Effective Date shall be payable on the Amendment No. 2 Effective Date, but no amounts under Section 3.05 shall be payable in connection with such conversion.

 

(ii) Subject to the terms and conditions hereof and of Amendment No. 2, (A) each Additional Term B Lender severally agrees to make loans denominated in Dollars in an aggregate amount not to exceed the amount of such Additional Term B Lender's Additional Term B Commitment to the Borrower and (B) each Term Lender severally agrees to make its Increased Term B Loans (if any) to the Borrower, in each case, on the Amendment No. 2 Effective Date. The Borrower shall prepay in full the aggregate principal amount of the Non-Converted Initial Term Loans with the proceeds of the Additional Term B Loans and the Increased Term B Loans, concurrently with the receipt thereof. All Additional Term B Loans and Increased Term B Loans will be of the Type

 

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and have the Interest Period (if applicable) specified in the Committed Loan Notice delivered in connection therewith. All accrued and unpaid interest on the Non-Converted Initial Term Loans to, but not including, the Amendment No. 2 Effective Date shall be payable on the Amendment No. 2 Effective Date and the Borrower will make any payments required under Section 3.05 with respect to the Non-Converted Initial Term Loans in accordance therewith.”

 

(c)           Amendment to Section 2.05(a).   Section 2.05(a)(iv) is hereby amended by replacing (i) each instance of “on or prior to the one-year anniversary of the Closing Date” used therein with “prior to six months following the Amendment No. 2 Effective Date” and (ii) each instance of “Initial Term Loans” with “Term B Loans”.

 

(d)           Amendment to Section 2.06(b).   Section 2.06(b) is hereby amended by adding the following at the end thereof:

 

“The Additional Term B Commitment of each Additional Term B Lender shall be automatically and permanently reduced to $0 upon the funding of Additional Term B Loans on the Amendment No. 2 Effective Date. The commitment of each Term B Lender to make Increased Term B Loans shall be automatically and permanently reduced to $0 upon the funding of the Increased Term B Loans on the Amendment No. 2 Effective Date.”

 

(e)           Amendment to Section 2.07(a).   Section 2.07(a) is hereby amended and restated in its entirety as follows:

 

“(a)       Term Loans.   The Borrower shall repay to the Administrative Agent for the ratable account of the Term Lenders (i) on the last Business Day of each February, May, August and November, commencing with August 31, 2016, an aggregate principal amount equal to 0.25% of the aggregate principal amount of all Term B Loans outstanding on the Amendment No. 2 Effective Date (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.05) and (ii) on the Maturity Date for the Term B Loans, the aggregate principal amount of all Term B Loans outstanding on such date. In the event any Incremental Term Loans, Refinancing Term Loans or Extended Term Loans are made, such Incremental Term Loans, Refinancing Term Loans or Extended Term Loans, as applicable, shall be repaid by the Borrower in the amounts and on the dates set forth in the Incremental Amendment, Refinancing Amendment or Extension Amendment with respect thereto and on the applicable Maturity Date thereof.”

 

(f)            Amendment to Section 2.14(e)(i)(C).   Section 2.14(e)(i)(C) is hereby amended by replacing each instance of “Initial Term Loans” with “Term B Loans”.

 

(g)           Amendment to Section 7.10.   Section 7.10 is hereby amended to add the following sentence:

 

“The proceeds of the Term B Loans shall be used to refinance the Initial Term Loans.”

 

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2.            Representations and Warranties . To induce the other parties hereto to enter into this Agreement, the Borrower and Holdings (on behalf of itself and each other Loan Party) represent and warrant to each of the Lenders (including the Addition Term B Lenders), the Administrative Agent and the Collateral Agent that, after giving effect to this Agreement:

 

(a)           The execution, delivery and performance by the Borrower and Holdings of this Agreement and the letter agreement in the form attached as Annex I hereto (the “ Cashless Rollover Letter ”), and the consummation of the transactions contemplated herein and therein, are within the Borrower’s and Holdings’ corporate or other powers, (i) have been duly authorized by all necessary corporate or other organizational action and (ii) do not (A) contravene the terms of any of its Organization Documents, (B) conflict with or result in any breach or contravention of, or the creation of any Lien under (other than as permitted by Section 7.01 of the Amended Credit Agreement), or require any payment to be made under (x) any Contractual Obligation to which the Borrower or Holdings is a party or affecting the Borrower or Holdings or their properties or any of their Subsidiaries or (y) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or Holdings or their property is subject, or (C) violate any applicable Law; except with respect to any conflict, breach or contravention or payment (but not creation of Liens) referred to in clause (ii)(B)(x), to the extent that such violation, conflict, breach, contravention or payment could not reasonably be expected to have a Material Adverse Effect.

 

(b)           No material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower or Holdings of this Agreement or the Cashless Rollover Letter, or for the consummation of the transactions contemplated hereby and thereby, except for the approvals, consents, exemptions, authorizations, actions, notices and filings which have been duly obtained, taken, given or made and are in full force and effect.

 

(c)           Each of this Agreement and the Cashless Rollover Letter have been duly executed and delivered by the Borrower and Holdings. This Agreement and the Cashless Rollover Letter each constitutes a legal, valid and binding obligation of each of the Borrower and Holdings, enforceable against such applicable party in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity.

 

3.            Conditions Precedent . This Agreement and the amendments set forth in Section 1 of this Agreement shall become effective on the first date (the “ Amendment No. 2 Effective Date ”) when, and only when, each of the applicable conditions set forth below have been satisfied (or waived):

 

(a)          The Administrative Agent (or its counsel) shall have received counterparts of this Agreement that, when taken together, bear the signatures of the Borrower, Holdings, the Administrative Agent, the Collateral Agent and each Term B Lender (whether pursuant to the execution and delivery of a Consent, the Joinder or counterparts of this Agreement). The Consents and the Joinder shall have been duly executed by each existing Term Lender, Increasing Term Lender or Additional Term B Lender, as applicable, such that upon such execution by all such Lenders, the aggregate principal amount of the Converted Initial Term

 

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Loans, the Increased Term B Loans and the Additional Term B Loans is equal to $2,339,375,000.

 

(b)          The Administrative Agent (or its counsel) shall have received a certificate of the Borrower and Holdings dated as of the Amendment No. 2 Effective Date signed by a Responsible Officer of the Borrower and Holdings, respectively, certifying (i) that the Organization Documents, including amendments thereto, of the Borrower and Holdings, as applicable, either (x) have not been amended since the Closing Date or (y) are attached as an exhibit to such certificate, (ii) (x) copies of resolutions of its Board of Directors (or similar governing body) of the Borrower and Holdings, as applicable, approving the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby or (y) to the extent the resolutions delivered on the Closing Date approve such matters, that the resolutions delivered on the Closing Date authorize the transactions contemplated hereby, remain in full force and effect and have not been amended or otherwise modified since the adoption thereof, (iii) (x) as to the incumbency and specimen signature of each officer executing this Agreement or any other document delivered in connection herewith on behalf of such Loan Party or (y) a certification that the incumbency and specimen signature of each officer of each Loan Party delivered to the Administrative Agent as of May 13, 2016 has not been amended since such date and (iv) as to the matters set forth in Section 3(g) and (h) below.

 

(c)           The Borrower shall have paid to the Administrative Agent and to each of Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding, Inc. and UBS Securities LLC, each as a joint lead arranger and joint lead book-running manager in connection with this Agreement, all fees and expenses due to be paid on the Amendment No. 2 Effective Date.

 

(d)           The Borrower shall have paid to the Administrative Agent, for the account of each Term Lender holding Initial Term Loans immediately prior to the effectiveness of this Agreement, all accrued but unpaid interest on such Term Lender's Initial Term Loans in accordance with Section 2.01(c) of the Amended Credit Agreement.

 

(e)           The Borrower shall have paid to the Administrative Agent, for the account of each Term Lender with Converted Initial Term Loans on the Amendment No. 2 Effective Date, an upfront fee in an amount equal to 0.25% of the aggregate principal amount of Converted Initial Term Loans on the Amendment No. 2 Effective Date.

 

(f)            The Administrative Agent shall have received a Committed Loan Notice of Term B Loans.

 

(g)           The representations and warranties set forth in Article V of the Amended Credit Agreement and in each other Loan Document shall be true and correct in all material respects on and as of the date hereof (both before and after giving effect to the transactions contemplated by this Amendment) with the same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date.

 

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(h)           No Default or Event of Default shall exist on the date hereof before or after giving effect to the Refinancing Term Loans and the use of proceeds thereof.

 

4.            Ratification and Acknowledgements .  By signing this Agreement, each of the Borrower and Holdings, on behalf of itself and each other Loan Party, hereby confirms that (i) the obligations of the Loan Parties under the Existing Credit Agreement as modified hereby (including with respect to the Term B Loans) and the other Loan Documents (x) are entitled to the benefits of the guaranties and the security interests set forth or created in the Collateral Documents and the other Loan Documents and (y) constitute Obligations for purposes of the Amended Credit Agreement, the Guaranty, the Security Agreement and all other Collateral Documents, (ii) notwithstanding the effectiveness of the terms hereof, the Guaranty, the Security Agreement and the other Loan Documents are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects and (iii) the Additional Term B Lenders shall be a “Secured Party” and a “Lender” for all purposes of the Amended Credit Agreement, the Guaranty, the Security Agreement and the other Loan Documents. Each of the Borrower and Holdings, on behalf of itself and each other Loan Party, ratifies and confirms that all Liens granted, conveyed, or assigned to the Collateral Agent by any Loan Party pursuant to any Loan Document remain in full force and effect, are not released or reduced, and continue to secure full payment and performance of the Obligations as modified hereby.

 

5.            Liens Unimpaired .  Each of the Borrower and Holdings, on behalf of itself and each other Loan Party, represents, warrants and agrees that after giving effect to this Agreement, neither the modification of the Existing Credit Agreement effected pursuant to this Agreement nor the execution, delivery, performance or effectiveness of this Agreement:

 

(a)          impairs the validity, effectiveness or priority of the Liens granted pursuant to any Loan Document, and such Liens continue unimpaired with the same priority to secure repayment of all Obligations (including with respect to the Term B Loans), whether heretofore or hereafter incurred; or

 

(b)          requires that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens.

 

6.            Amendment, Modification and Waiver .    This Agreement may not be amended, modified or waived except in accordance with the Amended Credit Agreement. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

 

7.            Loan Document .    This Agreement shall constitute a Loan Document for all purposes of the Amended Credit Agreement and the other Loan Documents.

 

8.            Governing Law, Etc .   THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. Sections 10.14, 10.15(b) and 10.16 of the AMENDED Credit

 

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Agreement are hereby incorporated by reference, mutatis mutandis .

 

9.            Counterparts .    This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by telecopier or other electronic transmission of an executed counterpart of a signature page to this Agreement shall be effective as delivery of an original executed counterpart of this Agreement.

 

[ Remainder of Page Intentionally Left Blank ]

 

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IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first set forth above.

 

  DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent and Collateral Agent
     
  By: /s/ Peter Cucchiara
    Name: Peter Cucchiara
    Title: Vice President
     
  By: /s/ Benjamin Souh
    Name: Benjamin Souh
    Title: Vice President

 

[Amendment No. 2 Signature Page] 

 

     

 

 

  Travelport Finance (Luxembourg) S.à r.l., as Borrower
     
  By: /s/ Rochelle Boas
    Name: Rochelle Boas
    Title: A manager
     
  By: /s/ John Sutherland
    Name: John Sutherland
    Title: B manager
     
  TRAVELPORT LIMITED , as Holdings
     
  By: /s/ Rochelle Boas
    Name: Rochelle Boas
    Title: Senior Vice President and Secretary

 

[Amendment No. 2 Signature Page]

 

     

 

 

ANNEX I

 

[Cashless Rollover Letter]

 

     

 

 

EXHIBIT A

 

CONSENT TO AMENDMENT NO. 2

 

CONSENT (this “ Consent ”) to Amendment No. 2, dated as of June 23, 2016 (the “ Amendment ”), by and among the Borrower, Holdings (each as defined below), the Lenders party thereto, the Administrative Agent and the Collateral Agent, to the Credit Agreement, dated as of September 2, 2014 (as amended by the Incremental Amendment to Credit Agreement, dated as of January 16, 2015), by and between Travelport Finance (Luxembourg) S.à r.l. , a private limited liability company ( société à responsabilité limitée ) incorporated and existing under the laws of Luxembourg, registered with the Luxembourg Trade and Companies Register under number RCS B B151012, having its registered office at 2-4, rue Eugène Ruppert, L-2453 Luxembourg and with a share capital of USD 180,000 (the “ Borrower ”), TRAVELPORT LIMITED, a company incorporated under the laws of Bermuda (“ Holdings ”), the other Guarantors party thereto, DEUTSCHE BANK AG NEW YORK BRANCH , as Administrative Agent, Collateral Agent and L/C Issuer and the other lenders party thereto (as further amended, restated, amended and restated, supplemented or otherwise modified from time to time, including pursuant to the Amendment, the “ Credit Agreement ”). Unless otherwise defined herein, capitalized terms used herein shall have the meaning given to such term in the Credit Agreement or the Amendment.

 

By its signature below, the undersigned hereby:

 

(a)          consents and agrees to the amendment of the Existing Credit Agreement as described in the Amendment;

 

(b)          acknowledges that it has received a copy of the Amendment together with all exhibits, schedules and annexes thereto and such other documents and information as it has deemed appropriate to make its own decision to enter into the Amendment and provide the consent set forth above;

 

(c)          authorizes the Administrative Agent, pursuant to authority granted to the Administrative Agent under the Existing Credit Agreement, to execute the Amendment on its behalf as if it were a party thereto; and

 

(d)          represents that it is a Term Lender under the Existing Credit Agreement.

 

Exchanging Term Lenders

 

In addition, the undersigned selects the settlement option marked below:

 

Cashless Settlement Option:

 

¨ Mark this box to exchange or convert (on a cashless basis) all of your Initial Term Loans with Term B Loans in a like principal amount as described in the Amendment.

 

By choosing this option the undersigned Lender hereby agrees (i) that the Administrative Agent may, in its sole discretion, elect to exchange or convert (on a cashless basis) less than 100% of the principal amount of such Lender's Initial Term Loans for Term B Loans, in which case the difference between the principal amount of such Lender's Initial

 

     

 

 

Term Loans and the allocated amount of Term B Loans will be prepaid on the Amendment No. 2 Effective Date and (ii) to the terms of the letter agreement in the form attached as Annex I to the Amendment (the " Cashless Rollover Letter "), with all rights and obligations attendant thereto.

 

Post-Effectiveness Settlement Option:

 

¨ Mark this box to have all of your Initial Term Loans prepaid on the Amendment No. 2 Effective Date and to purchase by assignment an aggregate principal amount of Term B Loans equal to the amount of such Initial Term Loans prepaid (or such lesser amount allocated by the Administrative Agent).

 

Increasing Term Lenders

 

¨   In addition, by marking this box, the undersigned Lender hereby requests to purchase Increased Term B Loans up to an aggregate principal amount no greater than $_____________________, subject to allocation by the Administrative Agent. Such Lender agrees that its signature hereto shall constitute its signature as Assignee to an Assignment and Acceptance reflecting such purchase and that it shall be bound by such Assignment and Acceptance in all respects. 

 

     

 

   

EXHIBIT A

 

IN WITNESS WHEREOF, the undersigned has caused this Consent to be executed and delivered by a duly authorized officer.

 

      ,
  as a Lender (type name of the legal entity)
     
  By:    
    Name:
    Title:
     
  If a second signature is necessary:
     
  By:    
    Name:
    Title:

  

     

 

 

EXHIBIT B

 

JOINDER AGREEMENT

 

JOINDER AGREEMENT, dated as of June 23, 2016 (this “ Agreement ”), by and among DEUTSCHE BANK AG NEW YORK BRANCH (the “ Additional Term B Lender ”), Travelport Finance (Luxembourg) S.à r.l. , a private limited liability company ( société à responsabilité limitée ) incorporated and existing under the laws of Luxembourg, registered with the Luxembourg Trade and Companies Register under number RCS B B151012, having its registered office at 2-4, rue Eugène Ruppert, L-2453 Luxembourg and with a share capital of USD 180,000 (the “ Borrower ”), TRAVELPORT LIMITED, a company incorporated under the laws of Bermuda (“ Holdings ”), and DEUTSCHE BANK AG NEW YORK BRANCH , as Administrative Agent (“ Administrative Agent ”).

 

RECITALS:

 

WHEREAS, reference is hereby made to (i) the Credit Agreement, dated as of September 2, 2014, and amended by the Incremental Amendment, dated as of January 16, 2015 (as further amended, restated, extended, supplemented or otherwise modified in writing from time to time, including pursuant to the Amendment (defined below), the “ Credit Agreement ”), by and between the Borrower, Holdings, the other Guarantors party thereto from time to time, the Administrative Agent, Collateral Agent, L/C Issuer and each Lender from time to time party thereto (capitalized terms used but not defined herein having the meaning provided in the Credit Agreement or the Amendment) and (ii) the Amendment No. 2 to the Credit Agreement (the “ Amendment ”), dated as of the date hereof, by and among the Borrower, Holdings, the Administrative Agent, Collateral Agent and each Lender party thereto;

 

WHEREAS, subject to the terms and conditions of the Credit Agreement and the Amendment, the Borrower may establish a new class of Term Loans as Refinancing Term Loans in the form of Term B Loans; and

 

WHEREAS, subject to the terms and conditions of the Credit Agreement, Additional Term B Lenders shall become Lenders pursuant to one or more joinder agreements;

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

The Additional Term B Lender hereby agrees to make Additional Term B Loans, in the amount notified to the Additional Term B Lender by the Administrative Agent but not to exceed the applicable amount set forth on its signature page hereto pursuant to and in accordance with Section 2.01(c)(ii) of the Credit Agreement. The Additional Term B Loans provided pursuant to this Agreement shall be subject to all of the terms in the Credit Agreement and to the conditions set forth in the Amendment and the Credit Agreement, and shall be entitled to all the benefits afforded by the Credit Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from the Guarantees and security interests created by the Collateral Documents.

 

The Additional Term B Lender, the Borrower, Holdings and the Administrative Agent acknowledge and agree that the Additional Term B Loans provided pursuant to this Agreement

 

     

 

 

shall constitute Term B Loans, for all purposes of the Credit Agreement and the other applicable Loan Documents.

 

By executing and delivering this Agreement, the Additional Term B Lender (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements of an eligible assignee under the Credit Agreement (subject to such consents, if any, as may be required under the Credit Agreement), (iii) from and after the Amendment No. 2 Effective Date, it shall be bound by the provisions of the Amendment and the Credit Agreement as a Lender thereunder and shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Additional Term B Loans and either it, or the Person exercising discretion in making its decision to make the Additional B Term Loans is experienced in acquiring assets of such type, (v) it has received a copy of the Amendment and the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and to purchase the Additional Term B Loans, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender or Agent and based on such documents and information as it has deemed appropriate at the time, made its own credit analysis and decision to enter into this Agreement and to purchase the Additional Term B Loans, (vii) it is not a Defaulting Lender, (viii) if it is not already a Lender under the Credit Agreement, it has delivered a completed Administrative Questionnaire in the form provided by the Administrative Agent; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent or any other Lender or Agent, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. The Additional Term B Lender appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto.

 

Upon (i) the execution of a counterpart of this Agreement by the Additional Term B Lender, the Administrative Agent, the Borrower and Holdings and (ii) the delivery to the Administrative Agent of a fully executed counterpart (including by way of telecopy or other electronic transmission) hereof, the undersigned Additional Term B Lender shall become a Lender under the Credit Agreement.

 

Delivered herewith to the Administrative Agent, are such forms, certificates or other evidence with respect to United States federal income tax withholding matters as the Additional Term B Lender may be required to deliver to the Administrative Agent pursuant to Section 10.07 of the Credit Agreement.

 

This Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

 

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This Agreement is a “Loan Document” for all purposes of the Credit Agreement and other Loan Documents.

 

This Agreement, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

 

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. 

 

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IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Joinder Agreement as of the date first written above.

 

TERM B LOANS

 

¨ The undersigned Additional Term B Lender hereby agrees to purchase Additional Term B Loans in an aggregate principal amount no greater than $_____________________ (or such lesser amount allocated to such Additional Term B Lender by the Administrative Agent).

  

  DEUTSCHE BANK AG NEW YORK BRANCH
     
  By:  
    Name:
    Title:
     
  By:  
    Name:
    Title:

  

[Signature Page to Joinder Agreement]

 

     

 

 

  DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent
     
  By:  
    Name:
    Title:
     
  By:  
    Name:
    Title:

 

[Signature Page to Joinder Agreement]

 

     

 

 

  Travelport Finance (Luxembourg) S.à r.l., as Borrower
     
  By:  
    Name:
    Title:
     
  By:  
    Name:
    Title:
     
  TRAVELPORT LIMITED , as Holdings
     
  By:  
    Name:
    Title:

 

[Signature Page to Joinder Agreement]

 

     

 

Exhibit 99.1

 

 

Travelport Worldwide Limited Reaffirms Full Year Guidance

 

Announces Successful Repricing of $2.34 Billion Term Loans

 

Company to Report Second Quarter 2016 Results on August 4, 2016

 

LANGLEY, U.K., June 27, 2016 — Travelport Worldwide Limited (NYSE: TVPT) today reaffirmed its financial guidance for the full year 2016 and announced that it successfully repriced its $2.34 billion term loans on Thursday, June 23, 2016.

 

Under the amended terms of Travelport’s credit agreement, the interest rate on its terms loans has been reduced by 75 basis points to LIBOR plus 4.00% (LIBOR floor of 1.00% remains unchanged) from LIBOR plus 4.75%. The repricing is expected to generate annualized cash interest savings of approximately $18 million based on the current principal balance of $2.34 billion outstanding. The term loans hold no significant maturities before September 2021.

 

Gordon Wilson, President and CEO of Travelport, commented: “The successful repricing of our term loans underscore Travelport’s commitment to financial health and flexibility, and this action will further strengthen our free cash flow generation.”

 

Travelport also notes the outcome of the United Kingdom referendum on EU membership and highlights the following key points about its business:

 

· Travelport’s business model is transaction-based and the company’s primary currency of revenue is the U.S. dollar. Travelport has negligible revenue denominated in British pounds (less than 1%). (1)
· While Travelport’s business operations are headquartered in the UK, its main technology and data center (processing the majority of transactions) is located in the United States.
· Travelport operates in approximately 180 countries and has a balanced geographical footprint across the leading travel economies in the Americas, Asia Pacific, Europe, the Middle East and Africa.
· While the UK is an important market, it only represents approximately 8% of Travelport’s net revenue. (1)
· Travelport has around 10% of its costs and expenses denominated in British pounds that are translated into U.S. dollars for its reporting and for which, alongside certain other major currencies of expense, Travelport operates a rolling hedge program. (1)(2)

 

Mr. Wilson continued, “Our business operations are based on a highly resilient transactional model. We benefit from a diverse and balanced global footprint in addition to significant growth engines, especially around mobile commerce and B2B payments. We reaffirm the financial guidance that we issued in February, 2016 and look forward to announcing our second quarter earnings results and discussing more detail on our performance on August 4, 2016.”

 

Outlook and Financial Guidance

Travelport reaffirms the following outlook for the full year 2016:

 

(in $ millions, except per share amounts)  

FY 2016

Guidance

Growth Rate
Net revenue $2,350 - $2,400 6% - 8%
Adjusted EBITDA $565 - $580 6% - 8%
Adjusted Net Income $140 - $150 15% - 23%
Adjusted Income per Share – diluted $1.12 - $1.20 12% - 20%
Adjusted Free Cash Flow $145 - $165 8% - 23%

 

 

(1) The percentages represent amounts for the year ended December 31, 2015.

(2) ‘ Costs and expenses’ excluding depreciation on property and equipment, amortization of customer loyalty payments, amortization of acquired intangible assets and non-core corporate costs.

 

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This guidance assumes spot foreign exchange rates as of June 24, 2016, together with the impact of foreign exchange rate hedges undertaken during 2015 as part of our rolling hedging program. For future periods, we are unable to provide a reconciliation of non-GAAP financial measures to relevant GAAP measures guidance because we do not provide guidance for equity-based compensation expense, provision for income taxes, interest income, interest expense, litigation and related costs, and other items, as certain of these items are out of our control that may be incurred in the future and/or cannot be reasonably predicted. Our quarterly and annual results as reported in these non-GAAP financial measures will be reconciled to the most directly comparable GAAP financial measures when we report such actual results.

 

The forward-looking statements made within this press release reflect expectations as of June 27, 2016. We assume no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in Travelport’s quarterly and annual Securities and Exchange Commission (SEC) filings and/or furnishings, which are available on the SEC’s website at www.sec.gov.

 

Contacts

 

For further information, please contact:

 

Investor s:

Majid Nazir

Vice President, Investor Relations

Tel: +44 (0)1753 288 857

majid.nazir@travelport.com

 

Media:

Kate Aldridge

Vice President, Corporate Communications
Tel: +44 (0)1753 288 720
kate.aldridge@travelport.com

 

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About Travelport ( www.travelport.com )

 

Travelport is a Travel Commerce Platform providing distribution, technology, payment, mobile and other solutions for the global travel and tourism industry.  With a presence in approximately 180 countries, over 3,700 employees, and an additional 1,200 employees at IGT Solutions Private Ltd who provide us with application development services, our 2015 net revenue was over $2.2 billion.

 

Travelport is comprised of:

 

- A Travel Commerce Platform through which it facilitates travel commerce by connecting the world’s leading travel providers with online and offline travel buyers in a proprietary business-to-business (B2B) travel marketplace. Travelport has a leadership position in airline merchandising, hotel content and rate distribution, mobile travel commerce and a pioneering B2B payment solution that addresses the needs of travel intermediaries to efficiently and securely settle travel transactions.

 

- Technology Services through which it provides critical IT services to airlines, such as shopping, ticketing, departure control and other solutions, enabling them to focus on their core business competencies and reduce costs.

 

Travelport is headquartered in Langley, U.K. The Company is listed on the New York Stock Exchange and trades under the symbol “TVPT”.

 

Forward-Looking Statements

 

Certain statements in this press release, including outlook and financial guidance, constitute “forward-looking statements” that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”, “estimates”, “plans”, “may increase”, “may fluctuate” and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.

 

Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this press release include, but are not limited to: factors affecting the level of travel activity, particularly air travel volume, including security concerns, pandemics, general economic conditions, natural disasters and other disruptions; general economic and business conditions in the markets in which we operate, including fluctuations in currencies, particularly in the U.S. dollar, and the economic conditions in the Eurozone; pricing, regulatory and other trends in the travel industry; our ability to obtain travel provider inventory from travel providers, such as airlines, hotels, car rental companies, cruise lines and other travel providers; our ability to develop and deliver products and services that are valuable to travel agencies and travel providers and generate new revenue streams; maintenance and protection of our information technology and intellectual property; the impact on travel provider capacity and inventory resulting from consolidation of the airline industry; the impact our outstanding indebtedness may have on the way we operate our business; our ability to achieve expected cost savings from our efforts to improve operational efficiency; our ability to maintain existing relationships with travel agencies and to enter into new relationships on acceptable financial and other terms; our ability to grow adjacencies, such as payment and mobile commerce solutions; and the impact on business conditions both in the United Kingdom and worldwide as a result of the United Kingdom’s decision to leave the European Union . These and other potential risks and uncertainties that could cause actual results to differ are more fully detailed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 18, 2016, and available on the SEC’s website at www.sec.gov .

 

Other unknown or unpredictable factors could also have material adverse effects on our performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except to the extent required by applicable securities laws, the Company undertakes no obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

 

This press release includes certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, important information regarding such measures is contained below.

 

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TRAVELPORT WORLDWIDE LIMITED

DEFINITIONS

 

Definitions

 

Adjusted EBITDA is defined as Adjusted Net Income (Loss) excluding depreciation and amortization of property and equipment, amortization of customer loyalty payments, interest expense, net (excluding unrealized gains (losses) on interest rate derivative instruments), and related income taxes.

 

Adjusted Free Cash Flow is defined as net cash provided by (used in) operating activities of continuing operations, adjusted to remove the impact of cash paid for other adjusting items which we believe are unrelated to our ongoing operations and to deduct Capital Expenditures.

 

Adjusted Income (Loss) per Share - Diluted is defined as Adjusted Net Income (Loss) for the period divided by the weighted average number of dilutive common shares.

 

Adjusted Net Income (Loss) is defined as net income (loss) from continuing operations excluding amortization of acquired intangible assets, gain (loss) on early extinguishment of debt, share of earnings (losses) in equity method investments, and items that are excluded under our debt covenants, such as gain on sale of shares of Orbitz Worldwide, Inc., non-cash equity-based compensation, certain corporate and restructuring costs, certain litigation and related costs, and other non-cash items such as unrealized foreign currency gains (losses) on earnings hedges, and unrealized gains (losses) on interest rate derivative instruments, along with any income tax related to these exclusions.

 

Adjusted Operating Income (Loss) is defined as Adjusted EBITDA less depreciation and amortization of property and equipment and amortization of customer loyalty payments.

 

Capital Expenditures is defined as cash paid for property and equipment plus repayments in relation to capital leases and other indebtedness.

 

Customer Loyalty Payments are payments made to travel agencies or travel providers with an objective of increasing the number of travel bookings using the Company’s Travel Commerce Platform and to improve the travel agencies or travel providers’ loyalty, which are instrumented through agreements with a term over a year. Under the contractual terms, the travel agency or travel provider commits to achieve certain economic objectives for the Company. Such costs are specifically identifiable to individual contracts with travel agencies or travel providers, which have determinable contractual lives. Due to the contractual nature of the payments, the Company believes that such assets are appropriately classified as intangible assets.

 

Net Debt is defined as total debt comprising of current and non-current portion of long-term debt minus cash and cash equivalents.

 

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TRAVELPORT WORLDWIDE LIMITED

NON-GAAP FINANCIAL MEASURES

 

Non-GAAP Financial Measures

 

Adjusted Net Income (Loss), Adjusted Operating Income (Loss) and Adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net income (loss), as determined under U.S. GAAP. In addition, these measures may not be comparable to similarly named measures used by other companies. We have included these measures as they are the primary metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital investment allocations. They are also used by the management to assess the performance and profitability of the Company to determine incentive compensation for future periods.

 

We believe our important measure of liquidity is Adjusted Free Cash Flow. This measure is useful indicator of our ability to generate cash to meet our liquidity demands. We believe Adjusted Free Cash Flow provides investors with an understanding of how assets are performing and measures management’s effectiveness in managing cash. We believe this measure gives management and investors a better understanding of the cash flows generated by our underlying business, as cash paid for other adjusting items are unrelated to the underlying business and our Capital Expenditures are primarily related to the development of our operating platforms. Adjusted Free Cash Flow is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure should not be considered as measure of liquidity or cash flows from operations as determined under U.S. GAAP .

 

We believe Adjusted Income (Loss) per Share-diluted is a useful measure for our investors as it represents, on a per share basis, our consolidated results, taking into account depreciation and amortization on property and equipment and amortization of customer loyalty payments, as well as other items which are not allocated to the operating businesses such as interest expense (excluding unrealized gains (losses) on interest rate derivative instruments) and related income taxes but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Income (Loss) per Share-diluted has similar limitations as Adjusted Net Income (Loss), Adjusted Operating Income (Loss) and Adjusted EBITDA and may not be comparable to similarly named measures used by other companies. In addition, Adjusted Net Income (Loss) does not include all items that affect our net income (loss) and net income (loss) per share for the period. Therefore, we believe it is important to evaluate these measures along with our consolidated condensed statements of operations .

 

The management uses Net Debt to review the Company’s overall liquidity, financial flexibility, capital structure and leverage. Further, we believe, certain debt rating agencies, creditors and credit analysts monitor our Net Debt as part of their assessment of our business. Net Debt is not a measurement of our indebtedness under U.S. GAAP and should not be considered in isolation or as alternative to assess our total debt or any other measures derived in accordance with U.S. GAAP .

 

These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of Travelport’s results as reported under U.S. GAAP .

 

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