Thursday 21 June 2018

Kerzner completes $145m debt refinancing

Dubai, March 26, 2013

Kerzner International Hotels (Kerzner), a leading global developer and operator of destination resorts, casinos and luxury hotels, including Atlantis and One&Only in Dubai, said it has completed the refinancing of its $145 million debt.

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, said a top official.  

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, remarked its CEO Alan Leibman.

Deutsche Bank is the mandated lead arranger and underwriter of the facility, which was subsequently syndicated in the market.

“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,” he added.
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 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, said Leibman.

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.

“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,” he added.  

Ashok Aram, the CEO of Deutsche Bank Mena, said, “We are pleased with our partnership with Kerzner and to make this transaction a success. It 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," he added.-TradeArabia News Service

Tags: hotels | debt | Atlantis | Kerzner International |

More Travel, Tourism & Hospitality Stories

calendarCalendar of Events