Santander Offers €400 Million Debt of Hesperia to Funds

17/02/2014 – ExpansiónPro

Proyecto Tauro (Tauro Project). This is the name given to the process through which Santander hopes to shed its €400 million debt at Grupo Inversor Hesperia. The entity has surveyed international funds which came back to the Spanish market. The transaction could affect the NH Hoteles as Santander holds about 20% of its capital.

The bank focuses about 85% of Hesperia´s entire debt (of more than €480 million). Also, Bankia, BBVA and Popular were its creditors but the scope on their side is much less.

Negotiations between Santander and the funds began at the end of 2013. (…) It is said that among them they are: Lone Star, Blackstone, Cerberus, Oaktree, Fortress and Centerbridge. (…) Recently, the vulture funds acquired debts of companies like Realia or NCG Banco. Now they turned their eyes to hotels.

This is the third refinancing taken up by Hesperia (the first one in 2009 and the second in 2012). One of the ways will be postponing debt expiration deadlines. In exchange, the group pledges asset divestment (of around €150 million). Both its properties and holding in the NH Hoteles are at stake.

Apart from Hesperia, the hotel chain´s shareholders are: Bankia, Kutxa, Amancio Ortega, HNA and several foreign management companies. (…).

Original article: Expansión (Lunes 17 Febrero 2014, pp 4)

Translation: AURA REE