Deutsche Bank acted as administrative agent and lender on the refinancing of the fifth amendment to its current credit agreement with Playa Hotels & Resorts.
Under the agreement, Deutsche Bank will (i) refinance and extend the maturity of a portion of Playa Hotels & Resorts’ revolving credit facility through January 2024; (ii) increase the interest rate applicable to the refinanced revolving loans by 1% to, at the company’s option, either a base rate plus a margin of 3% or LIBOR plus a margin of 4%; (iii) extend the period during which a minimum required liquidity test replaces the leveraged-based financial covenant through March 31, 2022; (iv) modify the leveraged-based financial covenant for certain test dates after the DB covenant relief period; and (v) add certain restrictions on, among other things, the incurrence of additional debt and making of investments, dispositions and restricted payments.
Playa Hotels & Resorts also entered into the second amendment to its credit agreement with an affiliate of Davidson Kempner Capital Management serving as administrative agent. The amendment provides that Davidson Kempner Capital Management and the lenders party thereto from time to time will, among other things, (i) extend the period during which a minimum required liquidity test replaces the leveraged-based financial covenant through March 31, 2022; (ii) modify the leveraged-based financial covenant for certain test dates after the DK 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, as the case may be, all as more fully set forth in the second amendment.
“The successful extension of the covenant relief period and the amendment to our credit facility significantly increase our financial flexibility in the near term, allowing us to focus on the operational recovery in our markets,” Bruce Wardinski, chairman and CEO of Playa Hotels & Resorts, said. “The ongoing support of our bank lending group has played a pivotal role in our ability to navigate the COVID-19 pandemic successfully, and we look forward to continuing the relationship for years to come.”
Playa Hotels & Resorts N.V. is an owner, operator and developer of resorts in beachfront locations in Mexico and the Caribbean.
