Travelport's new private equity owners have pledged to back the company to the tune of a $500 million financing package.
The "affiliates" of Siris Capital Group and Evergreen Coast Capital have committed to support the company and also made available a further $500 million.
The financial backing for Travelport is being touted as liquidity to "exceed the expectations of its customers despite the impact of the COVID-19 pandemic" - but there are other factors in play.
Travelport is currently embroiled in a dispute with payment giant WEX, which says it will not continue with plans to purchase eNett, Travelport’s payments business, and virtual card issuer Optal.
WEX had announced the $1.7 billion purchase deal in January, agreeing to pay $1.275 billion in cash and the rest in common stock to Travelport and its owners, Siris Capital Group and Elliot Management Corporation for eNett and to private shareholders for Optal.
WEX chair and CEO Melissa Smith said the deal is off in May.
“We’ve concluded that the pandemic and the conditions arising in connection with it have had and continue to have a material adverse effect on the businesses of eNett and Optal,” she said at the time.
Travelport is now lumbered with a lucrative payments business that it cannot currently offload and a potential hole in its revenue book for 2020.
Still, Frank Baker, co-founder and managing partner of Siris Capital, says: “Siris is committed to Travelport’s future success and growth, and our priority is maintaining the company’s position as the industry partner of choice.
"We remain optimistic about the future trajectory of the business as the Company takes steps to increase its resiliency and emerge from the current crisis."
Travelport CEO Greg Webb joined the company in July 2019, replacing long-time boss Gordon Wilson and two months after a $4.4 billion deal that took Travelport off the public markets and back to private equity under the auspices of Siris Capital Group and Evergreen Capital.