Playa Hotels & Resorts N.V. announced that it has raised $204 million of additional debt financing, has sold $20 million of its ordinary shares at a price of $4.10 per share in a private transaction, and has entered into the Fourth Amendment to Amended & Restated Credit Agreement with its senior secured credit facility lenders.

The Company has raised $204 million of additional debt financing from affiliates of Davidson Kempner Capital Management LP, consisting of the following:

• A $94 million credit facility maturing in April of 2024 with an effective interest rate of 9.25%, which we intend to immediately draw; and
• A $110 million property loan agreement secured by the Hyatt Ziva & Zilara Cap Cana and the Hilton Rose Hall maturing in July of 2025 with an effective interest rate of 9.25%, which is expected to be funded in June 2020 upon satisfaction of customary conditions precedent.

The Company has also sold $20 million of its ordinary shares to affiliates of Davidson Kempner Capital Management LP at a price of $4.10 per share in a private transaction that was exempt from registration under the Securities Act of 1933.

The Fourth Amendment amends the Company’s senior secured credit facility to, among other things, (i) substitute a minimum required liquidity test for the leveraged-based financial covenant from the third quarter of 2020 through, and including, the second quarter of 2021 (the “Covenant Relief Period”), (ii) modify the leveraged-based financial covenant for certain test dates after the Covenant Relief Period, and (iii) add certain restrictions on, among other things, the incurrence of additional debt and making of investments, dispositions and restricted payments during the Covenant Relief Period, as the case may be, all as more fully set forth in the Fourth Amendment.

“With this additional financing significantly improving Playa’s liquidity profile, and only $85 million in debt maturing in 2022, we look forward to delivering excellent Service from the Heart and taking market share in the new travel landscape,” said Bruce Wardinski, Chairman and CEO of Playa. “Our ability to access the capital markets is a reflection of the on-going investor support and our commitment to driving superior returns.”

Proceeds from these transactions will be used for general corporate purposes. For additional details on the aforementioned transactions, please refer to the Company’s Current Report on Form 8-K, which will be filed with the SEC on or about June 12, 2020.