Travelodge Hotels plans to sell £550 million equivalent secured notes in two tranches

By Paul A. Harris

Portland, Ore., April 18 – Travelodge Hotels Ltd. began marketing £550 million equivalent of TVL Finance plc five-year senior secured notes on Tuesday, according to market sources.

The Rule 144A and Regulation S deal will feature a sterling-denominated tranche of fixed-rate notes, which come with two years of call protection, and a euro-denominated tranche of floating-rate notes, which come with one year of call protection.

Tranche sizes remain to be determined.

Goldman Sachs and Barclays are leading the notes sale.

The Thame, England-based hospitality company plans to use the proceeds plus cash on hand to redeem its outstanding senior secured fixed- and floating-rate notes in their entirety, and to indirectly repay a portion of capitalized interest on certain subordinated shareholder loans.

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