Orient-Express Hotels announced completion of a $657 million senior secured credit facility, consisting of a $552 million seven-year term loan and a $105 million five-year, multi-currency revolving credit facility. The term loan B is comprised of a $345 million tranche and a €150.0 million tranche ($207 million as of the closing date).

The company intends to utilize the term loan B proceeds to refinance all of the funded debt of the company and its subsidiaries other than the debt of Charleston Place in South Carolina, a consolidated variable interest entity with separate non-recourse financing. The transaction was initially launched by the company on February 27, 2014, as announced in its fourth quarter 2014 earnings news release.

The corporate debt refinancing will be a leverage-neutral transaction and will only slightly increase the company’s annual consolidated interest expense. Interest on the U.S. dollar-denominated tranche of the term loan B will be calculated at LIBOR plus a 3.00% margin and interest on the euro-denominated tranche will be calculated at EURIBOR plus a 3.25% margin. Both tranches of the term loan B will be subject to interest rate floors of 1.00%. Including the debt of Charleston Place and the impact of interest rate swap agreements the company is planning to execute on the Term loan B, the company’s all-in weighted average cash interest rate is expected to be approximately 4.6% upon closing. The new facility will also provide the company with additional flexibility in the form of a revolving credit facility and will increase the Company’s weighted average debt maturity from 2.2 years to 6.3 years.

“We are very pleased to have secured this long-term corporate debt facility, providing us with a simple and transparent capital structure that gives us the flexibility and liquidity necessary to execute on our strategic initiatives,” said Martin O’Grady, CFO of the company. “In late 2013, we achieved our near-term net leverage target of 4.0 times adjusted EBITDA, and we took advantage of our reduced leverage and the attractive capital markets to replace our long-standing asset-level debt structure with a more streamlined corporate debt facility.”

Owned and operated by Orient-Express Hotels, Belmond is a global collection of hotel and luxury travel adventures.