Tourism Industry News
Elbit Imaging Ltd. Announces Refinancing of Three London Hotels
Tel-Aviv, Israel, (PRNewswire-FirstCall/WorldTourismNews.eu) Elbit Imaging Ltd. (NASDAQ: EMITF) ("EI" or the "Company") today announced the completion of refinancing of three of its jointly controlled hotels in London - the Park Plaza Riverbank, the Park Plaza Victoria and the Park Plaza Sherlock Holmes. The refinancing involves a 5-year term facilities (the "Facilities") totaling GBP165.0 million (approximately $259 million) with Aareal Bank AG ("Aareal"), with a maturity until November 2015. The hotels were previously financed by a GBP195.0 million (approximately $306 million) facility (outstanding GBP181.9 million) (approximately $285.5 million) from Goldman Sachs International ("Goldman Sachs"), which was due in March 2011.
The hotels are jointly owned by EI and Park Plaza Hotels Limited ("Park Plaza") via three jointly-controlled companies) (collectively the "Borrowers"). A separate arrangement with Aareal has been made to meet the costs of terminating an existing interest rate swap (the "Close-Out Costs") amounting to GBP14.4 million (approximately $22.6 million) which, as part of the overall financing, were settled by Aareal. The Borrowers have undertaken to pay to Aareal the value of the Close-Out Costs over the next three years.
The facility agreement with Aareal provide for two facilities: one for GBP153.6 million (approximately $241 million) to Riverbank and Victoria ("Facility A") and the other for GBP11.4 million (approximately $17.8 million) to Park Plaza Sherlock Holmes ("Facility B").
In addition to the new Facilities Elbit, together with Park Plaza provided an equity injection of GBP16.6 million (approximately $26 million) of which GBP7.7 million (approximately $12 million) was provided by Elbit in order to enable the Borrowers to repay the balance of the amount that was outstanding to Goldman Sachs.
Elbit and Park Plaza have severally guaranteed the Borrowers' obligations in respect of the Close-Out Costs and the Facility B plus interest in a total amount of GBP25.8 million (approximately $40.5 million). Elbit share in such guarantee is GBP11.9 million (approximately $18.6 million). Save as aforesaid, the facilities are without recourse to Elbit or any other member of its group apart from the Borrowers and their subsidiaries.
Mr. Dudi Machluf, co-CEO of Elbit Imaging, commented: "We are proud to announce the securing of new long term bank financing for three of our hotels in London. The new facilities has longer maturity date (until November 2015) and it will replace the prior short term facility with a favorable interest rate. The securing of these new facilities was enabled due to the group's good relationship with Aareal Bank and the continued improvement both in revenue and day-to-day business activity, of our London based hotels".
For Further Information: Company Contact: Dudi Machluf, Chief Executive Officer (Co-CEO), Tel: +972-3-608-6024, firstname.lastname@example.org; Investor Contact: Mor Dagan, Investor Relations, Tel: +972-3-516-7620, email@example.com