Carlson Family Gives Up Control of Namesake Agency CWT in Refinancing Deal
Photo Credit: CWT is headquartered in Minneapolis in the U.S. Unsplash / Gregory Hayes
Skift Take
A new chapter that will help the agency focus on the future, but will an opaque ownership structure hinder its recovery plans?
Corporate travel agency CWT hopes to draw a line under a tumultuous 18 months with a major financial restructuring, which will see the family-owned Carlson group switch from majority to minority stakeholder.
CWT, which up until 2019 was known as Carlson Wagonlit Travel, has entered into an agreement with its equity owners, as well as firms that represent more than 90 percent of the company’s outstanding debt, to recapitalize the business.
Terms of the agreement, entered into with financial stakeholder Barings, among others, include adding $350 million of new equity capital into the business, and eliminating almost $900 million of debt by replacing its existing $1.5 billion in debt with a new first lien debt of $625 million and an undrawn revolving credit facility. First lien debt holders are paid back before all other debt holders in the event of
