My Travel Group's bank debt has ticked up to the 25-27 context from the 23-26 range after the company obtained adequate working capital to see it through 2004. The company won approval last week from its shareholders for the sale of its U.S. cruise businesses, Auto Europe and World Choice Travel (WCT). The asset sales are part of the company's program to raise cash for working capital needs through the sale of non-core businesses. One buysider said he was surprised that the loan did not jump higher on the news, but blamed the lackluster rally on the cautionary tone of investors toward year's end. "Next year it will start to move," he predicted.
Auto Europe will be sold to entities associated with Soros Private Equity Investors for approximately $85 million. The completion of the sales of My Travel's U.S. cruise businesses to National Leisure Group for about $110 million and WCT to Travelocity.com for roughly $50 million in cash is expected later this month. My Travel is a U.K.-based distributor of all-inclusive holidays and other leisure travel services. The company has its own fleet of aircraft and cruise ships, and a focused portfolio of hotels and other resort properties. Officials at My Travel could not be reached by press time.