06/16/2021 | Press release | Distributed by Public on 06/16/2021 13:18
Madrid, 16 June 2021.- NH Hotel Group has successfully placed €400m of Senior Secured Notes due July 2026 on the market. The proceeds will be used to prepay the existing €357m of Senior Notes due 2023. The new notes, which were substantially oversubscribed, carry a coupon of 4% and allows the Company to extend this maturity up to five years.
In addition to the new notes, the Company has signed the extension of the maturity of its €242m Syndicated Revolving Credit Facility (RCF) from March 2023 to March 2026. The significant support granted by the financial entities of this financing instrument is worth noting, with the extension of the waiver of financial covenants throughout the year 2022. Elsewhere, in May, the Company had already extended the maturity on its €250m syndicated loan secured by Spain's official credit institute (ICO) arranged in April 2020, until April 2026 with no amortizing schedule until maturity.
NH Hotel Group has included a rights issue of up to €107m on the agenda for its upcoming Annual General Meeting, scheduled for 30 June 2021. Minor International, the Company's majority shareholder, has formally committed to pay in the €100m corresponding to its shareholding by capitalising a loan already granted in May. The remaining €7 million can be taken up by the rest of the Company's shareholders as part of a formal process that is scheduled to conclude between September and October 2021 with the delivery of the new shares.
Meanwhile, the Company continues to advance on the execution of its asset rotation strategy, based on sale & leaseback transactions already under analysis, with the aim of raising after-tax proceeds of over €200m. Just last week, the Company notified Spain's securities market regulator (CNMV) that it was in advanced negotiations for the sale of the NH Collection Barcelona Gran Hotel Calderón for approximately €125m, retaining the operation of the hotel under a long-term lease agreement, with a variable rent and a minimum guaranteed, which will include the usual mechanisms for limiting losses. The proceeds from these asset rotation transactions will further reinforce NH's liquidity in the short term and reduce corporate debt in the medium term.
NH Hotel Group has emphasised to the market that the battery of refinancing, capital increase, and asset rotation measures proactively implemented in recent months, and specifically the extension of all major debt maturities for five years, provides a solid foundation for facing the imminent sector recovery. Its current optimal capital structure evidences the strong support received from its majority shareholder, the financial entities that are part of the Group's banking pool, and the broader debt investment community.
About NH Hotel Group
NH Hotel Group is a consolidated multinational player and a benchmark urban hotel operator in Europe and the Americas, where it operates more than 350 hotels. Since 2019, the Company has been working with Minor Hotels on integrating all of its hotel brands under a single corporate umbrella with a presence in over 50 countries worldwide. Thus, a portfolio of over 500 hotels has been articulated around eight brands - NH Hotels, NH Collection, nhow, Tivoli, Anantara, Avani, Elewana and Oaks - to forge a broad and diverse range of hotel propositions in touch with the needs and desires of today's world travellers.