Maybourne Hotel Group agrees new £547m debt facility

29 December 2012 by
Maybourne Hotel Group agrees new £547m debt facility

The company, which has been at the centre of a control battle between the multi-millionaire Barclay brothers and Irish property magnate Paddy McKillen, has been provided with a £547m debt facility - over a period of five years - arranged by Blackstone Real Estate Debt Strategies (BREDS). The bulk of the finance, £400m, has come from the Bank of Merrill Lynch, the Royal Bank of Canada and Wells Fargo Bank, with a £147m mezzanine loan funded in partnership with the Royal Bank of Canada and Starwood Capital.

Maybourne's refinancing follows a successful £145m rights issue concluded with existing shareholders.

Maybourne's chief executive, Stephen Alden, said he was delighted to have completed the complex refinancing before the end of the year. "It places us in an ideal position to realise our capital investment strategy and thus to maintain our leadership among the world's finest hotels."

Joe Pedlow, managing director of BREDS, added: "This transaction was delivered because of the quality of the assets, the strength of the management team and the commitment of the lenders."

While Sir David and Sir Frederick Barclay have moved closer to obtaining full control of Maybourne with their 64% holding in the company, McKillen, who owns the remaining 36% of shares, has won the right to take his claim on the company to the Court of Appeal in the new year.

Barclay brothers have paid no corporation tax on the Ritz for 17 years, reveals BBC's Panorama >>

Battle for control of Maybourne Group continues as McKillen wins right to appeal >>

Barclay brothers score High Court victory over battle for Maybourne Hotel Group >>

By Janet Harmer
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