LONDON Feb 16 Spanish hotel room specialist
Hotelbeds Group is set to raise around an extra €170m of
leveraged loans to back its acquisition of US-based travel
distribution company Tourico Holidays, banking sources said on
Hotelbeds announced plans to merge Tourico with its business
unit Bedbank on February 7.
HSBC, Morgan Stanley, Bank of Ireland, Deutsche Bank and
UniCredit are leading the leveraged loan financing, which is due
to launch for syndication to institutional investors imminently,
the sources said.
The loan will add to Hotelbeds’ existing €490m term loan,
which was raised in June 2016 to back its €1.165bn acquisition
by Cinven and Canada Pension Plan Investment Board, from Tui
That term loan pays 625bp over Euribor, with a 0% floor. It
allocated with a 97.5 OID but has since traded up on Europe’s
secondary loan market to above par.
It was quoted at 100.4 on February 15, according to Thomson
Reuters LPC data.
An interest margin of 625bp over Euribor is far higher than
what a majority of companies are paying for European term loans.
It is possible Hotelbeds will seek to reprice its existing
term loan on more attractive terms, becoming the latest borrower
to take advantage of the deep liquidity available in the market,
the source said.
"The company is performing well and so more things are
doable," one of the sources said.
Headquartered in Palma de Mallorca, Hotelbeds was
established in 2001 and offers hotel rooms to the travel
industry from its inventory of around 73,000 hotels in over 180
(Editing by Christopher Mangham)