Global Business Travel Group (GBTG) Launches Warrant Exchange Offer

American Express Global Business Travel Group (NYSE:GBTG) announced this morning that it has launched an exchange offer for all outstanding warrants.

Holders of the company’s 27,226,933 public warrants and 12,224,134 private placement warrants stand to receive 0.275 shares per warrant in the exchange. The offering period is set to end at midnight on October 7. Any warrants that are not exchanged as a part of the offer are to be automatically converted to 0.2475 shares at the end of this period – a 10% drop in value.

This offer would add up to 10,849,043 new shares and GBTG has already received the consent of 40.56% of public warrants, needing 50% in order for the move to be approved. The company’s shares opened down about -6% on the announcement, but at about $7.70 in early morning trading, the exchange would provide about $2.11 in value per warrant. The warrants (NYSE:GBTG.WS) have naturally surged on the news 45% to about $1.99 in early trading.

Global Business Travel Group closed its combination with Apollo Strategic Growth Capital on May 27. New Jersey-based Amex GBT provides a marketplace and loyalty platform for companies providing business travel goods and services hosting $39 billion in total transaction value in 2019. It hit a high of $8.40 yesterday after reaching a post-close low of $5.55 in July.

Last month, it announced it had generated $486 million in revenue with $47 million in EBITDA in the second quarter of 2022.

ADVISORS

• BofA Securities is serving as the Deal Manager for the offer and consent solicitation
• D.F. King & Col., Inc. has been appointed as the information agent for the offer and consent solicitiation
• Continental Stock Transfer & Trust Company has been appointed as the exchange agent