European online travel giant eDreams ODIGEO confirmed a successful €425 million refinancing of its debt.

Confirmation came on Friday with the debt offering described as being well received, “further demonstrating the bond market’s support for the company, its management team and its strategy”.

The company received orders from more than 100 investors from the US and every major European country in which it operates, including France, Germany, Spain, Italy, the UK and Sweden.

“This transaction allows the company to extend the maturity of its debt to five years and gain significant flexibility verses its current financing,” the Spanish-based business said.

The deal will allow the company to save more than €12 million in annual interest resulting in a “significant improvement of its free cash flow generation”.

Chief financial officer David Elízaga said: “We are very pleased with the strong support we have received from the financial markets.

“This puts the company in a much stronger position, with greater flexibility, and reconfirms the strategy and performance of the company”

eDreams ODIGEO and certain of its subsidiaries will guarantee the new bond, and it will be secured by certain assets of the company.

The company operates the brands eDreams, GO Voyages, Opodo, Travellink, plus metasearch engine Liligo and claims more than 18.5 million customers.