Wyndham Hotels & Resorts, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt and Borrowing Arrangements

Long-Term Debt and Borrowing Arrangements

3 Months Ended

Mar. 31, 2019

Long-Term Debt and Borrowing Arrangements

The Company’s indebtedness consisted of:



	March 31, 2019		December 31, 2018
Long-term debt: ^(a)
$750 million revolving credit facility (due May 2023)	$	—	$	—
Term loan (due May 2025)	1,578		1,582
5.375% senior unsecured notes (due April 2026)	494		494
Finance leases	64		65
Total long-term debt	2,136		2,141
Less: Current portion of long-term debt	21		21
Long-term debt	$	2,115	$	2,120


(a)	The carrying amount of the term loan and senior unsecured notes are net of deferred debt issuance costs of $20 million and $21 million

as of March 31, 2019 and December 31, 2018, respectively.

Maturities and Capacity

The Company’s outstanding debt as of March 31, 2019 matures as follows:



	Long-Term Debt
Within 1 year	$	21
Between 1 and 2 years	21
Between 2 and 3 years	21
Between 3 and 4 years	21
Between 4 and 5 years	22
Thereafter	2,030
Total	$	2,136

As of March 31, 2019, the available capacity under the Company’s revolving credit facility was as follows:



	Revolving Credit Facility
Total capacity	$	750
Less: Letters of credit	15
Available capacity	$	735

Deferred Debt Issuance Costs

The Company classifies deferred debt issuance costs related to its revolving credit facility within other non-current assets on the Condensed Consolidated Balance Sheets. The Company had deferred debt issuance costs of $5 million as of March 31, 2019 and December 31, 2018.

Cash Flow Hedge

The Company has hedged a portion of its $1.6 billion term loan. As of March 31, 2019, the pay-fixed/receive-variable interest rate swaps hedge $1.0 billion of the Company’s term loan interest rate exposure, of which $500 million has a remaining term of approximately five years with a weighted average fixed rate of 2.61% and $500 million has a remaining term of approximately three years with a weighted average fixed rate of 2.43%. The variable rates of the swap agreements are based on one-month LIBOR. The aggregate fair value of these interest rate swaps was a $15 million and $5 million liability as of March 31, 2019 and December 31, 2018, respectively, which was included within other non-current liabilities on the Condensed Consolidated Balance Sheets. Unrealized losses recognized in accumulated other comprehensive income (“AOCI”) for the three months ended March 31, 2019 were $10 million ($8 million, net of taxes).

Interest Expense, Net

Wyndham Hotels incurred net interest expense of $24 million and $1 million for the three months ended March 31, 2019 and 2018, respectively. Cash paid related to such interest was $18 million for the three months ended March 31, 2019.