Alvarez & Marsal (A&M), the global independent professional services firm, has advised London based Maybourne Hotel Group on its successfully completed planned refinancing. This has enabled the group to repay its £660 million (approx. 800 million) loan facility and to continue to invest in its iconic London hotels - Claridge's, The Connaught and The Berkeley.
Commenting on the transaction, Robin Priest, Managing Director, Real Estate Advisory Services at A & M, said:
"This refinancing provides an excellent foundation for the Company's future. It has been a pleasure to work with the Company, the Board, the lenders and the advisory group to deliver this result. To have such a significant amount of property related debt raised in this challenging market and at such speed is testament to the quality of the assets and the continued close collaboration amongst those involved."
Stephen Alden, CEO of Maybourne Hotel Group said:
"We are delighted to have completed a complex refinancing in challenging market conditions. Our own team, the Board, our advisors and the lending group have worked extremely hard and in close collaboration - to achieve this excellent result. It places us in an ideal position to realize our capital investment strategy and thus to maintain our leadership among the world's finest hotels."
The five year debt facilities were lead arranged by Blackstone Real Estate Debt Strategies (BREDS). BREDS worked closely with lead banks Bank of America Merrill Lynch (BAML) and the Royal Bank of Canada (RBC) who co-arranged and underwrote the £400 million (approx. 486 million) senior facility, of which Wells Fargo took up to £100 million (approx. 120 million) at close. A £147 million (approx. 178.5 million) mezzanine loan was underwritten by Blackstone and funded in partnership with RBC and Starwood Capital.
Source: Alvarez & Marsal