Viad expands revolver by $70 million and adds borrower, guarantor

By Marisa Wong

Los Angeles, Oct. 11 – Viad Corp. entered into a third amendment on Oct. 6 to its credit agreement dated July 30, 2021 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, among other things, increases the principal amount of the revolving commitments under the initial revolving credit facility by $70 million to a total of $170 million and adds a $10 million Canadian dollar swingline subfacility.

In addition, the amendment adds wholly owned subsidiary Brewster Inc. as a co-borrower and wholly owned subsidiary Brewster Travel Canada, Inc. as a guarantor.

Proceeds from the transaction, along with cash from Viad’s balance sheet, were used to prepay $70 million of the outstanding balance on Viad’s existing term loan B.

The credit spread on the term loan B is 500 basis points for SOFR borrowings, whereas the credit spreads on the revolver are based on Viad’s total net leverage ratio and range from 250 bps to 350 bps for SOFR loans. Based on the company’s June 30 net leverage ratio of 2.91, the credit spread on the revolver is currently 300 bps.

Viad is a Scottsdale, Ariz.-based provider of experiential leisure travel and live events and marketing experiences.

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