Dalata seals €600m refi to fuel growth

Irish hotel operator Dalata has refinanced its existing debt facilities and added further liquidity to fund its growth ambitions. The new lending facilities are made up of a green term loan facility of €100m (£84m) and a multi-currency revolving credit facility of €375m with an opening margin of 1.7% and 1.3% respectively. The facilities both have a five-year term expiring in October 2029 with the option of two one-year extensions. The group has also completed a private placement with €125m of senior secured green notes. They have an average coupon of 4.6% and 6.2% respectively and a maturity profile of between five and seven years. The new facilities replace Dalata’s £176.5m loan and a €304.9m revolving credit facility, both due to mature in October next year. Group financial officer Carol Phelan said the new funding increased the group’s debt capacity to €600m, diversified its funding sources and enhanced its flexibility. “As part of the refinancing, we are very pleased to have also secured our inaugural private placement on attractive terms demonstrating the credit quality of the group,” she added. “Our strategic focus on growing a sustainable business has been illustrated by the green term loan and private placement. These new facilities reflect the confidence of our partners, further enhance the group’s strong balance sheet and enable us to continue to deliver on our ambitious growth strategy”. Dalata’s existing banking syndicate, Allied Irish Banks, Bank of Ireland, Barclays Bank and HSBC Bank, has been joined by NatWest in this latest financing.