Barceló to Restructure €733 Mn Debt

24/04/2014 – Cinco Dias

Barceló Corporación Empresarial, the mother company of Barceló Hotels & Resorts and Viajes Barceló, is going to plead permission to “issue fixed-income securities” from its shareholders. The hotel group ponders turning to the debt market in order to issue the securities and thus cut in its financial debt that amassed €732.9 million at the end of 2012.

Simón Barceló Tous and Simón Pedro Barceló Vadell, the group´s chairmen, follow the steps taken by two other hotel chains. Precisely, Meliá placed €250 million in convertible bonds with a 4.5% coupon, while NH Hotel Group carried out two issues: one of €250 million in convertible bonds and the other of €250 million in secured senior obligations.

 The nearest stakeholders´meeting will take place on 30th May and if the issue is approved, the operation might add to the position of Barceló at the final bidding for the Occidental Hoteles, put up for an auction by BBVA and Amancio Ortega and also desired by Marriott, Posadas, KSL, Host Hotels & Resorts, Grupo Playa and CPG.

Barceló does not deny possible hotel purchases in the future as the group wishes to grow in Mexico, the Dominican Republic, Panama, Northern Africa, Germany, Turkey and Greece.



Original article: Cinco Días (by Laura Salces)

Translation: AURA REE