MWB Group has refinanced a £285.5m debt facility against its Malmaison and Hotel du Vin business.
The refinancing, together with the £100m net proceeds from the five sales and leasebacks the company previously announced, will enable MWB to reduce Malmaison's debt to £180m.
The company said that Malmaison, its 82.5% owned, subsidiary, had entered into an agreement with Bank of Scotland and Royal Bank of Scotland, and current shareholder Riverland, whereby the major part of its £282.5 million facility is being extended until 31 December 2014.
The group said this would leave MWB well positioned to drive growth in Malmaison, underpinned by a more robust, less leveraged capital structure.
Richard Balfour-Lynn, chief executive of MWB, said: “These new facilities reflect the banks' confidence in both the group's management team and Malmaison's future as one of the UK's leading boutique hotels group. The sales and leasebacks will enable the group to substantially de-gear Malmaison. The amended shareholder agreement will leave MWB with 100%. ownership of the business's future residual economic value, and emphasises the board's belief in the potential growth and value of Malmaison.
“As a result, the group will be less leveraged and have a more robust capital structure while still retaining a strong asset backing, as 77% of the 26 strong Malmaison and Hotel du Vin portfolio by number is freehold or long leasehold.”
