February 18, 2009 // Franchising.com // Parsippany, N.J. — Wyndham Worldwide Corporation (NYSE:WYN) today announced it is withdrawing its intention to enter into an at–the–market equity sales program and will not enter into a distribution agreement or file a related prospectus supplement.
"We have reconsidered our plans for issuing up to $200 million of equity. The market reaction to our announcement was strongly negative, and we appreciate the feedback from our shareholders," said Stephen P. Holmes, Chairman and CEO of the Company. "Our intention with the plan was to further support our credit ratings and optimize our access to the debt markets in the future. There is no need to issue equity and, therefore, we will not file a prospectus supplement. We will continue to actively manage the business to maximize cash flow from operations and strengthen our financial position. We have adequate liquidity to meet the operating needs of the business."
As one of the world's largest hospitality companies, Wyndham Worldwide offers individual consumers and business–to–business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world–renowned brands. Wyndham Hotel Group encompasses more than 7,040 franchised hotels and approximately 592,900 hotel rooms worldwide. Group RCI offers its nearly 3.7 million members access to more than 73,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of over 150 vacation ownership resorts serving over 830,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 27,000 employees globally.
This press release contains "forward–looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward–looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward–looking statements. The forward–looking statements contained in this press release include statements related to the Company's revenues, earnings and related financial and operating measures, financing plans and restructuring plans.
You are cautioned not to place undue reliance on these forward–looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward–looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war and terrorist activity, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Quarterly Report on Form 10–Q, filed with the SEC on November 10, 2008. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward–looking statements, to report events or to report the occurrence of unanticipated events.