Viad borrows remaining $123 million available under revolver

By Rebecca Melvin

New York, March 18 – Viad Corp. is borrowing the remaining $123 million available under its $450 million second amended and restated credit agreement with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate of the new borrowing is Prime plus 100 basis points, or 4.25%. The company intends to convert the rate to a London interbank offered rate, and based on its leverage ratio on Dec. 21, 2019, that current spread is Libor plus 200 bps.

The company said the drawdown of the revolver, which matures Oct. 24, 2023, was taken as a proactive measure to increase its cash position and preserve financial flexibility in light of the Covid-19 outbreak and related global markets uncertainty.

Viad is a Phoenix-based company that provides services for exhibition organizers as well as travel and recreation services.

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