Malmaison debt reduced to £180m through refinancing
MWB board members came to an agreement with Bank of Scotland, Royal Bank of Scotland and Riverland, an associate of RBSM Investments to extend 'the major part of its £282.5m facility' to 31 December 2014.
The hotel owner recently completed the sale and leaseback on five of its hotels, netting it about £100m and with the refinancing will enable it to cut debt from £272m (on 31 December 2010) to £180m.
"This will leave MWB well positioned to drive growth in Malmaison, underpinned by a more robust, less leveraged capital structure," the company said in a statement.
MWB chief executive Richard Balfour Lynn 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 per cent 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 per cent of the 26 strong Malmaison and Hotel du Vin portfolio by number is freehold or long leasehold."
