Dalata Refinancing Includes €100 million Green Term Loan and Inaugural Private Placement of €125 million Green Loan Notes
ISE: DHG LSE: DAL
Dublin and London | 10 October 2024: Dalata Hotel Group plc (‘Dalata’ or the ‘Group’), the largest hotel operator in Ireland, with a growing presence in the United Kingdom and Continental Europe, is pleased to announce it has successfully refinanced its existing debt facilities and added further liquidity to its capital structure to fund its future growth.
€475 million Bank Facilities
The new lending facilities are made up of a green term loan facility of €100 million and a multi-currency revolving credit facility of €375 million (together the “Bank Facilities”) with opening margin of 1.70% and 1.30% respectively. The Bank Facilities have a five- year term expiring in October 2029 with the option of two one-year extensions.
€125 million Private Placement
The Group has also completed its inaugural private placement with the €125 million issue of senior secured notes (the “Notes”), comprising €62 million and £52.5 million. They have an average coupon of 4.6% and 6.2% respectively and a maturity profile of between five and seven years. The Notes are designated as Green.
Both the green term loan and the Notes have been structured in line with the Loan Market Association Green Loan Principles.
Strong demand for both the Bank Facilities and the Notes offering (collectively the “New Facilities”) demonstrate confidence in Dalata’s investment case and performance. The New Facilities will further strengthen the Group’s financial position, providing greater financial flexibility through the extension of the debt facilities and support the business as it continues to deliver on its exciting growth strategy. The New Facilities replace the existing multi-currency loan facility consisting of a £176.5 million term loan facility and a €304.9 million revolving credit facility due to mature in October 2025.
The Group’s existing banking syndicate, Allied Irish Banks, Bank of Ireland, Barclays Bank and HSBC Bank has been joined by NatWest. The private placement noteholders are high quality institutional debt investors.
Carol Phelan, CFO, Dalata said: “We are delighted to announce the successful completion of our refinancing. This increases our debt capacity to €600 million, diversifies our funding sources and enhances the flexibility under the agreements. As part of the refinancing, we are very pleased to have also secured our inaugural private placement on attractive terms demonstrating the credit quality of the Group. Our strategic focus on growing a sustainable business has been illustrated by the green term loan and private placement. These New Facilities reflect the confidence of our partners, further enhance the Group’s strong balance sheet and enable us to continue to deliver on our ambitious growth strategy”.