Dalata Hotel Group has refinanced its existing debt facilities and added further liquidity to its capital structure to support its growth strategy.
The refinancing comprises €475 million in bank facilities and a €125 million private placement.
The €475 million lending facilities are made up of a green term loan facility of €100 million and a multi-currency revolving credit facility of €375 million, with opening margin of 1.70 per cent and 1.30 per cent respectively. The facilities have a five-year term expiring in October 2029 with the option of two one-year extensions.
The hotel operator also completed its inaugural private placement with the €125 million issue of senior secured notes, comprising €62 million and £52.5 million. They have an average coupon of 4.6 per cent and 6.2 per cent respectively and a maturity profile of between five and seven years.
Dalata says the new facilities – which replace the existing multi-currency loan facility consisting of a £176.5 million term loan facility and a €304.9 million revolving credit facility due to mature in October 2025 – will provide greater financial flexibility and support its expansion strategy.
The banking syndicate behind Dalata’s refinancing includes existing partners Allied Irish Banks, Bank of Ireland, Barclays Bank and HSBC, and has been joined by NatWest. The private placement noteholders are institutional debt investors.
What they said
Carol Phelan, CFO of Dalata said: “We are delighted to announce the successful completion of our refinancing. This increases our debt capacity to €600 million, 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. 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.”