By Paul Deckelman
New York, Feb. 14 - Playa Resorts Holding BV priced a $75 million add-on to its existing 8% senior notes due Aug. 15, 2020 (Caa1/B/) on Friday, high-yield syndicate sources said.
The add-on priced at 105.5 for a yield to worst of 6.779%.
The Rule 144A and Regulation S for life offering was brought to market via joint bookrunners BofA Merrill Lynch and Deutsche Bank Securities Inc.
The add-on notes will have the same terms as the company's original $300 million of notes, which priced at par on Aug. 6, 2013 via BofA Merrill Lynch and Deutsche Bank.
The securities will be non-callable until Aug. 15, 2016, other than via a make-whole call at 50 basis points over Treasuries, and have an equity clawback feature allowing for the redemption of up to 35% of the issue at 108 until Aug. 15. 2016. There is also a 101% change-of-control put.
Playa Resorts Holding is an Amsterdam-based wholly owned subsidiary of Playa Hotels and Resorts BV, a Fairfax, Va.-based owner, operator and developer of all-inclusive beach resorts in Mexico and the Caribbean.
Proceeds from the original bond deal, along with a concurrent $350 million senior secured term loan, plus a $350 million investment from international lodging giant Hyatt Hotels Corp. and an equity contribution of more than $400 million from the closely held Playa's shareholders were used to finance a $1.4 billion transaction last year in which Playa acquired nine hotels in Mexico, three others in the Dominican Republic and one in Jamaica. Several of the hotels have been co-branded with the Hyatt name and are being operated by Hyatt.
Proceeds from the add-on are slated for capital expenditures and general corporate purposes.
| Issuer: | Playa Resorts Holding BV
|
| Amount: | $75 million
|
| Maturity: | Aug. 15, 2020
|
| Securities: | Add-on to senior notes
|
| Bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc.
|
| Coupon: | 8%
|
| Price: | 105.5
|
| Yield to worst: | 6.779%
|
| Make-whole: | Treasuries plus 50 bps
|
| First call: | Aug. 15, 2016
|
| Equity clawback: | Up to 35% at 108 until Aug. 15, 2020
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 14
|
| Settlement date: | Feb. 26
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Original issue: | $300 million priced at par on Aug. 6, 2013
|
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