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
About NH Hotel Group
NH Hotel Group is a consolidated trusted operator and one of the leading urban hotel companies in Europe´s business segment with a wide presence in America. Forty years of experience position it as a reference in excellent service and customer care.
The Company operates over 350 hotels with almost 55,000 rooms in 28 countries, hosting more than 16 million guests a year across Europe, America and Africa in top destinations such as Berlin, Madrid, Amsterdam, Buenos Aires, Rome, Mexico City, Bogota, Barcelona, and New York.
NH Hotel Group’s hotel portfolio is structured under three brands, each with its own value proposition: NH Collection, premium upper-upscale hotels with iconic buildings located in the major capitals; NH Hotels, trustworthy upscale urban hotels offering the best value for money at the best locations; and nhow, unconventional and cosmopolitan design hotels with unique personalities inspired by the city vibe.
NH Hotel Group is a company deeply committed to corporate and social responsibility, actively promoting a responsible tourism model in all the communities where it is present through what it does best and loves most: host and serve, always with a smile. Responding to what the Company’s stakeholders expect from it is of key importance for NH Hotel Group. Its innovative business approach sets it as a benchmark in the hospitality industry and allows it to offer services of the highest quality, designed to exceed customers’ expectations, while providing sustainable solutions to the challenges of today and the future.
NH Hotel Group is listed in the Madrid Stock Exchange.
Over NH Hotel Group
NH Hotel Group is beursgenoteerd in Spanje met bijna 350 hotels in 28 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, en de nhow designhotels. 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 in 2014, 2015 en 2016. Kijk voor meer informatie on www.nh-hotels.com en www.nh-collection.com.
Über die NH Hotel Group
Die NH Hotel Group (https://www.nh-hotels.de/corporate/de ) ist ein multinationales Unternehmen und zählt mit rund 350 Hotels und 55.000 Zimmern zu den weltweit führenden Hotelgruppen im urbanen Raum. Hotels der NH Hotel Group gibt es in 28 Ländern in Europa, Amerika und Afrika und– und das in den Top-Destinationen wie Amsterdam, Barcelona, Berlin, Bogota, Brüssel, Buenos Aires, Düsseldorf, Frankfurt, London, Madrid, Mexico City, Mailand, München, New York, Rom und Wien.