Dalata Hotel Group has announced that it has successfully refinanced its existing debt facilities and added further liquidity to its capital structure to fund its future growth.
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 margins 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.
“This increases our debt capacity to €600 million, diversifies our funding sources, and enhances the flexibility under the agreements,” said Carol Phelan, CFO of Dalata.
“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.”
New Facilities
The largest hotel operator in Ireland claims that 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 and €304.9 million in revolving credit, 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.
‘Ambitious Growth Strategy’
“Our strategic focus on growing a sustainable business has been illustrated by the green term loan and private placement,” said Phelan.
“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.”
