U.S. Department of the Treasury: Ovation Travel Group, "Transaction Summary"

Summary

Treasury's transaction summary for a $20 million loan to Ovation Travel Group, Inc., a ticket agent with approximately 250 U.S. employees in March 2020, made under section 4003(b)(1) of the CARES Act. The loan is unsecured, bears an annual interest rate of LIBOR plus 5.5%, and matures on October 15, 2025. Treasury funded the full loan amount at close. The Company agreed to covenants restricting employee compensation, stock repurchases, dividends, and reductions in employment levels, and Treasury will also receive 3% payment-in-kind annual interest on the loan.

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Cite this document

“U.S. Department of the Treasury: Ovation Travel Group, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-ovation-travel-group-transaction-summar-c1e26d9b84/, SHA-256 9b76e095d30afb0f2555b2f439df475e8f023c832ed1b5880b83e1a219a4c445.

Full text

                                     Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $20 million to Ovation
Travel Group, Inc. (the Company), a ticket agent with approximately 250 U.S. employees in
March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. The loan is unsecured. It has an annual interest rate equal to
LIBOR plus 5.5% and matures on October 15, 2025. Treasury funded the full loan amount at
close. The loan proceeds will be used to provide liquidity to continue the Company’s operations.
The transaction agreement includes covenants by the Company to comply with certain
restrictions on employee compensation, stock repurchases, dividends, and reductions in
employment levels, as required by the CARES Act. The loan constitutes senior indebtedness of
the Company, and Treasury will also receive 3% payment-in-kind annual interest on the loan in
accordance with section 4003(d) of the CARES Act.

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SHA-256: 9b76e095d30afb0f2555b2f439df475e8f023c832ed1b5880b83e1a219a4c445
Our copy: TREAS-Ovation-Travel-Group-Transaction-Summary.pdf
Original: home.treasury.gov