carlyle amex gbt

Other members of the investment group include funds managed by The pandemic has roiled the travel industry, with companies suffering huge revenue drops, prompting workerCarlyle and GIC say the economic body blows the U.S. economy suffered from the virus amount to a “material adverse effect” under the stock-purchase agreement that allows them to scuttle the deal, Juweel said in the complaint. Given the difficulty in calling an MAE, investors are confident the loan will continue to trade in the secondary market. (Corrects second paragraph to clarify Amex GBT’s ownership) NEW YORK, May 12 (LPC) - A US$1.1bn leveraged loan partially supporting the Carlyle Group and Singaporean sovereign wealth fund GIC Pte Ltd’s purchase of a 20% stake in American Express Global Business Travel (Amex GBT) has been called into question as the investors look to walk away from the transaction. The sellers claim the purchase agreement included language accounting for a “global event,” and is confident that the credit agreement is favorable to its lenders, the first pair of sources said. In its complaint, Juweel said Carlyle and GIC balked after the price of the deal rose when AmEx GBT sought to use a portion of the proceeds to cover operating losses tied to the pandemic.

At the time, the travel agency received a $900 million investment from a group led by Certares and a Qatar sovereign wealth fund.But those joint venture partners in recent days traded lawsuits with Carlyle and GIC in a Delaware court over the fate of the more recent proposed Carlyle and GIC investment, first announced back in December.Carlyle and GIC are believed to argue that coronavirus and the collapse of business travel globally have materially altered the deal’s conditions, and thereby allow them to walk away.None of the parties are making public statements and the litigation is under sea for now, although there have been a variety ofThe recapitalization deal would have enabled some existing joint venture partners to sell a portion of their stakes, and enhanced Amex GBT’s ability to satiate its acquisition appetite. Get Unlimited Access To Daily New Coverage With Skift ProWhy Tesla and Microsoft Are Worrying About Corporate Travel Agencies Javascript is required for this site to display correctly. Editing by Michelle Sierra and For better results wrap your search query in quotation marks.American Express Global Business Travel growth strategy builds momentum with new, long-term investorsAmerican Express retains 50% stake in the joint venture; commits to long-term stake in business travel The Carlyle Group’s long-duration private equity platform, Carlyle Global Partners, and GIC join investor consortiumCertares commits to American Express Global Business Travel; Founder and Senior Managing Director Greg O’Hara continues as Board Executive Chairman—American Express Global Business Travel (GBT), the world’s leading business partner for managed travel, today announces the signing of an agreement for an equity recapitalization of its joint venture ownership structure to maintain GBT’s focus on its long-term growth strategy.

The use of proceeds was revised to account for the market disruption caused by the pandemic and appease lenders that may have been uncomfortable with a larger dividend, a source familiar with the company said. Carlyle and GIC are citing a Material Adverse Effect (MAE) to exit the investment.

Carlyle Roundtrip and Singaporean sovereign wealth fund GIC Pte Ltd. agreed in December to purchase a 20% stake in the company from Juweel Investors Ltd. in a deal estimated to be worth about $1.5 billion. Abbott said: “To have the continued support of growth-oriented investors willing to commit capital for long-term value creation is great news for our business, our customers and our people.

The investment would have given Carlyle and GIC a 20 percent stake in American Express GBT for $900 million and placed a value on the company of $5 billion. Certares brings together a team with decades of both operational and investment experience in private equity, travel, tourism, hospitality and travel-related business and consumer services. Dispute joins others in Delaware courts over failed deals