Kerzner International continues to grow with completion of US$ 145 million refinancing (United States)
Deal reduces interest costs and extends debt maturity, allowing new investment in growth projects |
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Kerzner International continues to grow with completion of US$ 145 million refinancing (United States)
Deal reduces interest costs and extends debt maturity, allowing new investment in growth projects |
Category: North America & West Indies / Carribean islands - United States - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2013-03-26
Kerzner International Hotels Limited (“Kerzner”), the leading international developer and operator of destination resorts, casinos and luxury hotels, including Atlantis and One&Only, today announced it has completed the successful refinancing of $145 million of its debt.
Deutsche Bank was appointed as the mandated lead arranger and underwriter of the facility, which was subsequently syndicated in the market. The transaction was supported by the inclusion of key regional banks including Abu Dhabi Commercial Bank, Ahli United Bank, Emirates NBD and Doha Bank.
The refinancing is the latest step in Kerzner’s strategy to de-lever its balance sheet as it focuses on acquiring new management contracts under an asset-light model.
The move will significantly reduce interest costs to the company, extending its debt maturity profile to five years and allowing it to reinvest in growth projects.
Alan Leibman, CEO of Kerzner International, said:“Our ability to tap into global and regional liquidity is a testament of the financial market’s confidence in Kerzner, its management team and the future prospects of the business.
“With substantially less debt and with access to additional cash, we can continue to focus on our growth plans to develop new experiences around the world.”
The completion of the refinancing allows Kerzner to continue focusing on its role as a management company, with significantly reduced indebtedness, under which it will continue to operate the current Atlantis, One&Only and Mazagan resorts as well as developing additional resort properties under these brands.
Kerzner has recently announced two new resorts, One&Only Montenegro, the company’s first resort in Europe and One&Only Sanya in China, the first resort in Asia.
Alan Leibman added:“I am also particularly pleased that our team, led by Ali Tabbal, Chief Financial Officer of Kerzner International, was able to appoint industry leaders Deutsche Bank as the mandated lead arranger and underwriter.”
Ashok Aram, CEO of Deutsche Bank MENA, said:“We are pleased with our partnership with Kerzner International and to make this transaction a success. The transaction strengthens Kerzner's financial structure and reflects investor's confidence in the company and its senior management. The transaction underlines our commitment to support growth companies in the MENA region.”
About Kerzner International Holdings LimitedKerzner International Holdings Limited, through its subsidiaries, is a leading international developer and operator of destination resorts, casinos and luxury hotels. Kerzner’s flagship brand is Atlantis, which includes Atlantis, Paradise Island, a 2,317 room ocean-themed destination resort in The Bahamas, as well as The Cove Atlantis and The Reef Atlantis in The Bahamas and Atlantis, The Palm, Dubai, a 1,500-room, water-themed resort on The Palm, overlooking the Arabian Sea and mainland Dubai. Under the One&Only brand, Kerzner also manages seven of the top-rated luxury resort properties in the world, located in The Bahamas, Mexico, Mauritius, the Maldives, South Africa and Dubai. One&Only currently has two resorts under development—One&Only Sanya and One&Only Montenegro. Additionally, the Mazagan Beach Resort, a 500-room destination casino resort in Morocco, is also operated by Kerzner.
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