Deal News: Hotel Group Refinance

Posted On: 09 Oct 2019

Knox Capital Solutions (KCS) are pleased to announce the recent completion of a finance consolidation deal for a rapidly growing hotel group.

Ed Ogden, Managing Director commenting on the deal, said:  “This was a challenging mandate for us as the client, a large UK based hotel group had built up their business utilising a variety of funding partners to support their initial growth.  Now established within the marketplace, they were looking to refinance with just one institution and take advantage of a significant reduction in their interest payments.”

Ed continued; “In addition the client was also seeking the flexibility to add further assets within the facility and increase the loan once the assets had reached a mature trading status. These requirements placed the facility outside of the majority of conventional funders, therefore requiring us to look at alternative high value funders for this particular client case.”

Following extensive research and negotiations with their panel of alternative funders, the KCS team were able to secure a facility that met the client’s specific requirements. This included the provision for the client to make an initial drawdown, which could then be followed by a funding top up as the hotel group’s trading matured.

The £50m+ facility provided enabled the loan to be drawn over a number of phrases and was secured in a way that permitted the client the flexibility it sought in order to consolidate and further develop its business growth.

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