Corporate Travel Management (ASX:CTD) entered into new AU$175 million debt facilities with the credit division of Pacific Equity Partners, replacing its existing AU$75 million corporate facility and providing the liquidity needed to meet client remediation obligations and ongoing business requirements, according to a Wednesday Australian bourse filing.
The company said it continues to receive support from existing lenders in the form of a AU$65 million bank guarantee facility and ancillary transaction facilities, with remediation obligations to UK customers to be funded from a combination of available cash and debt.
Annualized interest costs across all facilities are estimated at about AU$20 million in fiscal 2027 and fiscal 2028 based on expected drawdowns and current base interest rates, the filing added.
The company said its review of the contractual basis for recognizing air margin revenue under certain UK customer contracts has now been completed for the entire European segment, with CTM now expecting to recognize a liability of AU$29 million as of June 30.
The expected impairment of the ANZ segment is AU$89 million, with no change to the expected impairment of goodwill in the North America and Europe segments, it added.