Travelodge (the Company), the UK’s leading budget hotel company, is pleased to announce today that it has successfully completed its financial restructuring.
Under the terms of the financing agreement with its three key investors, GoldenTree Asset Management, Avenue Capital Group and Goldman Sachs:
• £75m of new money has been injected into the Company
• £55m will be invested into a major refurbishment programme across the estate covering over 11,000 rooms and 175 hotels. The refurbishment programme will commence in early 2013 and continue through to summer 2014
• Bank debt of £235m has been written off and £71m repaid, reducing total bank debt from £635m to £329m
• Repayment date of the remaining debt extended to 2017 and cash pay interest reduced significantly to a rate of 0.25% above LIBOR through to the end of 2014
Commenting on today’s announcement, Grant Hearn, CEO of Travelodge, said: “[Following the successful completion of the CVA process,] the financial restructuring completed today will provide further stability to the business. It demonstrates our investors’ confidence in the Company and I believe we have now secured the long-term future of the business.”
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For more information, please contact:
RLM Finsbury
James Leviton / Clare Dundas
020 7251 3801
Travelodge
Shakila Ahmed, Director of Communications
01844 358703
Notes to Editors
About Travelodge
The first budget hotel brand to launch in the UK in 1985, Over 13 million people stayed with Travelodge last year and 90% of reservations are currently made online at www.travelodge.co.uk, where room rates start at £19 per night.