ProsperCap Corporation has entered into facility agreements to secure new term loan and capital expenditure loan facilities for up to £310 million.
Arranged by Deutsche Bank AG London Branch and Standard Chartered Bank, the new facilities comprise a term loan facility of up to £296.04 million and a capex loan facility of up to £13.96million, both with an initial tenure of 24 months and three extension options of 12 months each.
The proceeds from the term and capex facilities will be used to refinance the ProsperCap’s existing facilities, pay for transaction costs, budgeted capital expenditure, and for general corporate purposes such as working capital requirements.
ProsperCap’s portfolio comprises 17 hotels - mostly in the upscale segment - across regional cities in the UK including Manchester, Birmingham, Glasgow and Liverpool under the Hilton, IHG and Marriott brands.
What they said
Iqbal Jumabhoy, chief executive officer & executive director of ProsperCap said: “With the new committed credit facilities, the group is now able to capitalise on opportunities made available by the current market momentum. Resources will be allocated to continue with our property improvement plans as agreed with our franchisors, as well as capacity expansion and room refurbishment to sustain hotel competitiveness and to meet the evolving expectations of our guests.”
Surawat Suwanyangyuen, chief financial officer of ProsperCap added: “We are pleased to partner with globally reputable financial institutions such as Deutsche Bank and Standard Chartered Bank and securing the term loan facilities for our performing UK hospitality portfolio. With their support, ProsperCap strengthens its financial stability allowing us to lay the foundation for long-term prudent capital management.”