MyTravel Group's bank debt has seen significant trading activity since the vacation company announced restructuring plans, that if successful, will involve an £800 million debt-to-equity swap. MyTravel's £250 million revolver traded in the 33-35 context, while the "Orlando" and "Bonding" facilities were seen trading in the 62-66 and 70-72 range, respectively. Before the restructuring was announced MyTravel traded in the 31-33 range. Meanwhile, the "Orlando" and "Bonding" facilities changed hands in the 59-61 and mid 60s context, respectively. "People are getting greater clarity on what is going on," one European trader said.
The swap will include the revolver, $100 million of U.S. private placements and the £210 million "Orlando" facility together with certain elements of aircraft lease financing arrangements and £216 million of convertible bonds. The plan involves the full conversion of the company's debt apart from the current "Bonding" facility. Upon completion of the plan lenders, other than bondholders, will own 88% of the company's equity while bondholders will own 8%. Current equity holders will retain 4%. MyTravel expects to complete the restructuring before the end of the year. A spokeswoman for the Manchester, U.K.-based company did not return calls.