Travel + Leisure Co. (NYSE:TNL) announced on December 10, 2025 that it had completed a repricing of its $869 million 2024 Term Loan B facility, lowering the interest rate from SOFR + 2.50% to SOFR + 2.00%. The 50‑basis‑point reduction directly cuts the company’s borrowing costs and is expected to generate roughly $5 million in annual interest savings.
The repricing preserves the facility’s maturity of December 14, 2029, keeping the company’s long‑term debt profile unchanged while freeing capital that can be deployed toward its vacation‑ownership and travel‑club initiatives. The move is part of a broader debt‑management strategy that included a $593 million term‑loan reprice in December 2024 and a $282 million credit‑agreement amendment the same month.
CFO Erik Hoag said the repricing “reflects the strength and consistency of our business model, the continued improvement in our credit profile, and the confidence lenders have in our long‑term performance.” The company’s leverage ratio of 3.3× and a negative debt‑to‑equity ratio underscore the disciplined capital approach that has earned lender confidence.
Segment data from the most recent quarter reinforce the positive outlook: Vacation Ownership revenue rose 6% year‑over‑year to $1.2 billion, with volume per guest up 10%, while the company returned $106 million to shareholders, including $70 million in share repurchases. The cost savings from the repricing support continued free‑cash‑flow generation and give management flexibility to pursue growth in high‑margin segments.
Analysts view the repricing as a sign of strong credit and disciplined capital management, noting that the interest‑rate reduction aligns with the company’s strategy to maintain a robust balance sheet while funding strategic initiatives. The event is a material financing action that enhances financial flexibility and supports the company’s long‑term growth plans.
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