Slate Asset Management, an alternative asset management platform with a focus on real estate, provided a $75 million non-revolving credit facility to InnVest Hotels, an owner and operator of hotels in Canada.
The credit facility was provided to InnVest as part of Slate’s special situations strategy. Launched earlier this year, the strategy provides liquidity to members of Canada’s real estate industry, especially those impacted by COVID-19 induced market disruption. InnVest holds more than 80 hotels in its portfolio and its management team oversees the day-to-day activities for almost 70 hotels that it either owns or that are owned by third parties. Largo Capital acted as adviser to InnVest on this transaction.
“This is precisely what our special situations strategy has been designed to do,” Doug Podd, managing director of Slate, said. “This strategy allows us to use Slate’s flexible capital, market knowledge and ability to structure creative financial solutions to provide best in class operators, such as InnVest, with working capital when they need it most, allowing operators to focus on their business.”
“We are pleased to complete our financing agreement with Slate, which along with cash on hand, the support from a number of our mortgage lenders and participation in government programs, provides us with the needed liquidity to see InnVest through the COVID-19 pandemic,” George Kosziwka, CFO of InnVest, said. “This credit facility provides us with incremental liquidity to continue operations and various renovation activities in this challenging economic environment. It is also a testament to Slate’s faith in our experienced management team that allows InnVest and its wonderful hotel employees to focus on delivering an exceptional experience for our guests.”
Slate’s special situations strategy is equipped to execute on a variety of financing agreements, including bridge and transitional lending solutions, acquisition and restructuring of impaired or non-performing loans and securities, as well as balance sheet stabilization where existing debt or equity is constrained.