NH Hoteles successfully closes the refinancing process with the backing of all banks

Following the pertinent negotiations with its creditor banks, NH Hoteles has officially culminated its refinancing process. The new agreement was signed by the 33 banks holding 100% of the debt to be refinanced, and has been raised to public deed.

The transaction entails the refinancing of €729.8 million of debt that will now fall due within three to five years. The refinancing encompasses the balance outstanding under the syndicated loan arranged in August 2007 (€455 million) as well as virtually all the Group’s credit facilities (€275 million). The Group agreed to provide additional collateral with a view to successfully culminating the refinancing agreement.

The syndicated loan has three tranches: the first tranche, in the amount of €315.8 million, repayable in increasing bullets over a five-year term; a second tranche, consisting of a €164 million revolving facility repayable at the term of the agreement; and a third €250 million tranche repayable in three years’ time at the latest from the proceeds from asset sales under a liquidity generation program to be set in motion.

The interest rate applicable under the new agreement is 3-month EURIBOR plus a spread of 450 basis points, adjustable upwards or downwards as a function of the degree of compliance with the repayment schedule associated with the third tranche and improvement in the net debt/EBITA ratio, respectively.

The arrangement fee has been set at 2% of the amount to be refinanced and will be paid this year.

In addition, the Group has agreed the terms of the refinancing of its debt in Italy in the amount of €75 million. This debt has been refinanced for three years and the Group’s Italian subsidiary has the option to extend the facility for another two years after that. This agreement will be signed in July when the Italian restructuring process is complete.

Following the close of the syndicated loan refinancing, coupled with the agreement reached in Italy, with both transactions encompassing more than €800 million, the Company’s refinancing process is now complete, leaving the Group free to concentrate all its efforts on continuing to boost earnings and profitability.

The successful completion of the refinancing process is a clear sign of the confidence the banks place in NH Hoteles S.A., underpinned by the Company’s track record of compliance, its business plan and its prospects for generating cash flow in the years to come.

The refinancing process was accomplished with the advice of Lazard investment bank.
 

About NH Hoteles
NH Hoteles (www.nh-hotels.com) is Europe’s third-ranked business hotel chain. It has almost 400 hotels with around 60,000 rooms in 26 countries across Europe, the Americas and Africa. NH Hoteles currently has 21 new hotels under construction which will add over 2,000 new rooms to its portfolio.
NH Hoteles is traded on the Madrid stock exchange.

FOR FURTHER INFORMATION

NH Hoteles Communications Department
Tel: +34914519762
Tel: +34 91451 97 18 (switchboard)
Email: comunicacion@nh-hotels.com

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Tel: 902 115 116 (from Spain)
Tel: +800 0115 0116 (from Austria, Belgium, France, Germany, Ireland, Holland, Italy, Portugal, Switz. & Russia)
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Website: http://www.nh-hotels.com