CWT to invest $100 million in technology and innovative products as recapitalization plan is approved

Moving forward with strengthened balance sheet and $350 million of new equity capital to support strategic initiatives

MINNEAPOLIS, 12 November, 2021 – CWT, the Business-to-Business-for-Employees (B2B4E) travel management platform, today announced it will invest $100 million in the myCWT travel management platform and innovative product offering as it moves forward to implement its previously announced recapitalization plan. That plan today was approved (“confirmed”) by a court in an expedited legal process with the overwhelming support of CWT’s financial stakeholders. The recapitalization plan provides CWT with $350 million of new equity capital to reinvest in the business, eliminates approximately half of the Company’s debt and provides for all business partners and other providers of goods and services to CWT to be paid in full.

Michelle McKinney Frymire, CWT’s Chief Executive Officer, commented, “We are pleased to have received prompt court approval of the agreement we reached with CWT’s financial stakeholders, which positions the Company for long-term success and provides significant financial resources to further grow and develop our business. Having reached this important milestone, we are now able to move beyond the pandemic and accelerate investments that create innovative programs and industry-leading experiences, including an enhanced myCWT platform. As business travel continues to recover, we look forward to building on our momentum, continuing to advance our strategic priorities for the benefit of our customers, partners and other stakeholders, and delivering exceptional experiences for our customers, travelers and attendees.

“On behalf of the leadership team, I thank all of our CWT colleagues for continuing to perform at the highest level despite the challenges created by the pandemic. I am tremendously proud of the many improvements we have already implemented, laying a strong foundation for our future. I also want to thank our financial stakeholders for their continued support and confidence in CWT, our strategy and services, and, most of all, our great people,” Ms. McKinney Frymire added.

Technology and Sustainable Product Investment Plans

CWT’s initial $100 million investment in myCWT and its innovative product offering, including the further enhancement of its sustainable proposition, will be focused on augmenting CWT’s existing omni-channel experience, enabling it to continue its pre-pandemic track record of strong growth, and enhancing the existing sustainable solutions it provides for its customers and their travelers. This will include expanding CWT’s breadth and depth of omni-channel content, travel comparison capabilities, analytical reporting, and choice and availability of sustainable travel solutions to further enhance the point-of-sale experience for travelers and carbon footprint details to enable better-informed decision-making. Additional details about CWT’s investment plans will be announced in the near term.

As the recovery in business travel and meetings and events gains momentum, the targeted investments build on the Company’s strategic development plans implemented during the pandemic, which have enabled customers to benefit from:

• Patented algorithm search applications;
• A true omni-channel experience;
• More efficient follow-the-sun servicing capabilities;
• An enhanced digital hotel booking experience;
• Refined data analytics for greater insight and improving ROI; and
• Dedicated resources and services to enable a safe and secure return to travel.

Recapitalization Plan

Key terms of the recapitalization plan approved today, include:

• Adding $350 million of new equity capital into the business;
• Eliminating approximately half of CWT’s $1.6 billion in debt;
• Providing CWT with substantial long-term liquidity;
• Providing for CWT’s financial stakeholders to become the Company’s new owners; and
• Providing for all business partners and other providers of goods and services to CWT to be paid in full.

Kirkland & Ellis LLP is serving as legal adviser, Houlihan Lokey is serving as financial adviser, AlixPartners LLP is serving as restructuring adviser and Shearman & Sterling LLP is serving as corporate finance counsel to CWT in connection with the recapitalization process. Stroock & Stroock & Lavan LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal advisors and Rothschild & Co. and Evercore are serving as financial advisors to groups of CWT's noteholders.