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Maybourne Hotel Group Completes Planned Refinancing

Monday, December 24, 2012
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Maybourne Hotel Group
Maybourne Hotel Group

Londonbased Maybourne Hotel Group is pleased to announce that today it successfullycompleted its planned refinancing by signing £547 million in five year debtfacilities lead arranged by Blackstone Real Estate Debt Strategies (BREDS).This follows the rights issue of £145 million successfully concluded earlier inthe week with the existing shareholders. This enables the group to repay itscurrent £660 million loan facility and provides an appropriate and stablecapital base for the group to continue to invest in its world class hotels –Claridge’s, the Connaught and the Berkeley.

BREDS worked very closely with lead banks Bank of AmericaMerrill Lynch (BAML), the Royal Bank of Canada (RBC) and Wells Fargo Bank(Wells) who co-arranged and underwrote the £400 million senior facility. The£147 million mezzanine loan was underwritten by Blackstone and funded inpartnership with RBC and Starwood Capital.

Stephen Alden, CEO of Maybourne Hotel Group commented: “We aredelighted to have completed a complex refinancing in challenging marketconditions before year end. Our own team, the Board, our advisors and thelending group have worked extremely hard – and in close collaboration - toachieve this excellent result. It places us in an ideal position to realize ourcapital investment strategy and thus to maintain our leadership among theworld’s finest hotels.”

Joe Pedlow, Managing Director of BREDS said: “We are proud tohave been selected to lead this financing and to have delivered what we believeis an outstanding debt package for the group, particularly in the context of anilliquid debt market and a tight timeframe. This transaction was deliveredbecause of the quality of the assets, the strength of the management team andthe commitment of the lenders. It has been a tremendous team effort and we lookforward to working with the company in the coming years.”

Maybourne Hotel Group was advised by Alvarez & Marsal LLP,Eastdil Secured and DLA Piper. Robin Priest, Managing Director of Alvarez &Marsal, added: “This refinancing provides an excellent foundation for thecompany's future. It has been a pleasure to work with the company, the Board,the lenders and the advisory group to deliver this result.”

About Maybourne Hotel Group

Maybourne Hotel Group whose headquarters is in Mayfair, London,owns and manages Claridge’s, the Connaught and the Berkeley, three of theworld’s most renowned hotels. Maybourne hotels are committed to deliveringauthentic and unique guest experiences that reflect the individual nature ofits hotels, its guests and its people whilst maintaining a timeless eleganceand intuitive service style that are the hallmarks of its properties.
www.maybourne.com

About Blackstone

Blackstone is one ofthe world’s leading investment and advisory firms. We seek to create positiveeconomic impact and long-term value for our investors, the companies we investin, the companies we advise and the broader global economy. We do this throughthe commitment of our extraordinary people and flexible capital. Ouralternative asset management businesses include the management of privateequity funds, real estate funds, hedge fund solutions, credit-oriented fundsand closed-end funds. The Blackstone Group also provides various financialadvisory services, including financial and strategic advisory, restructuringand reorganization advisory and fund placement services. Further information isavailable at www.blackstone.com. Follow us on Twitter @Blackstone.

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