NH Hotel Group accelerates its deleveraging process by €100 m by redeeming all of the outstanding bonds issued in 2013 ahead of maturity
The company delivers its deleveraging commitments ahead of schedule
The transaction will generate net savings of approximately €9.6 million
Madrid, 30 October 2017. NH Hotel Group today announced the full redemption and cancellation of the €100 million outstanding of the senior secured notes issued in 2013 in the amount of €250 million. The redemption will be completed on November, 30th and will be funded with a mix of available cash and temporarily with short-term credit facilities. The transaction will generate net interest savings of around €9.6 million between 30 November 2017 and 15 November 2019, which is when the bonds would have matured.
The redemption and cancellation of the notes marks a significant milestone in the execution of the company's business plan. The purpose of the transaction is to reduce gross debt and the average cost of its long-term debt, while extending its average tenor.
Pursuant to the terms and conditions of the issuance, the cancellation will be completed pursuant the voluntary early redemption process that allows NH to redeem the 2013 Notes as from 15 November 2017 at 103.438% of their nominal value, plus accrued and unpaid interest from the last interest payment date to the redemption date.
After the redemption announced today, and without considering the temporary use of short-term credit facilities, the average cost of the company's debt will fall from 4.2% to 3.8%; its average tenor will increase from 4.4 to 4.7 years, and the gross debt will stand at around €740 million. Also as a result of this redemption, the syndicated revolving credit facility arranged in 2016 for €250 million will remain fully undrawn and its maturity will be automatically extended to 2021.
Following the issuance of senior secured notes carried out in 2016 and 2017, which had already significantly reduced the company's average borrowing cost and extended its maturity profile, NH Hotel Group completes the refinancing of its long-term debt with this redemption. The only debt instrument now due in the medium term are the €250 million convertible bonds due November 2018 with a conversion price of €4.919/share (last close: €5.33).
*This press release has been translated for information purposes only. In case of conflict between the original version (Spanish language) and the translated version (English language), the original version shall always prevail.
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About NH Hotel Group
Over NH Hotel Group
NH Hotel Group is beursgenoteerd in Spanje met bijna 400 hotels in 30 landen in Europa, Afrika en Noord- en Zuid-Amerika. Onder de NH Hotel Group vallen de 3- en 4-sterren urban NH Hotels, de NH Collection flagship hotels, de nhow designhotels en de Hesperia vakantieresorts. Wereldwijd staan meer dan 20.000 medewerkers dag en nacht klaar om de beste service tegen de beste prijs te leveren voor de jaarlijks ruim 16 miljoen gasten. De hotels van NH Hotel Group zijn bekroond met de Zoover Award voor Beste Hotelketen 2014, 2015 en 2016. Kijk voor meer informatie op www.nh-hotels.com en www.nh-collection.com.
About NH Hotel Group
NH Hotel Group is listed on the IBEX 35 stock exchange of Madrid and has nearly 400 hotels in 30 countries in Europe, Africa and North- and South-America. The portfolio of the NH Hotel Group includes the 3- and 4- star urban NH Hotels, the NH Collection flagship hotels, the nhow designhotels and the Hesperia holiday resorts. Worldwide more than 20.000 employees work day and night to deliver the best service for the best price to the 16 million guests the hotel chain welcomes yearly. The hotels of NH Hotel Group have been rewarded with the Zoover Award for Best Hotel Chain of 2014, 2015 and 2016. For more information, visit www.nh-hotels.com and www.nh-collection.com.