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Dalata Hotel Group has announced it has successfully refinanced its existing debt facilities and added further liquidity to its capital structure to fund its future growth.
The new lending facilities are made up of a green term loan facility of €100m (£83.6m) and a multi-currency revolving credit facility of €375m (£313m) with opening margin of 1.70% and 1.30% respectively.
The bank facilities have a five-year term expiring in October 2029 with the option of two one-year extensions.
The group has also completed its inaugural private placement with the €125m (£104) issue of senior secured notes, comprising €62m (£51.5m) and £52.5m. They have an average coupon of 4.6% and 6.2% respectively and a maturity profile of between five and seven years.
Dalata said strong demand for both the bank facilities and the notes offering demonstrate “confidence” in Dalata’s investment case and performance. The new facilities will further strengthen the group’s financial position, providing greater financial flexibility through the extension of the debt facilities and support the business as it continues to deliver on its growth strategy.
The new facilities replace the existing multi-currency loan facility consisting of a £176.5m term loan facility and a €304.9m (£254m) revolving credit facility due to mature in October 2025.
The group’s existing banking syndicate, Allied Irish Banks, Bank of Ireland, Barclays Bank and HSBC Bank has been joined by NatWest. The private placement noteholders are high quality institutional debt investors.
Carol Phelan, CFO, Dalata said: “We are delighted to announce the successful completion of our refinancing. This increases our debt capacity to €600m (£501m), diversifies our funding sources and enhances the flexibility under the agreements. As part of the refinancing, we are very pleased to have also secured our inaugural private placement on attractive terms demonstrating the credit quality of the group.
“Our strategic focus on growing a sustainable business has been illustrated by the green term loan and private placement. These new facilities reflect the confidence of our partners, further enhance the group’s strong balance sheet and enable us to continue to deliver on our ambitious growth strategy.”
