PLANO, Texas—Aimbridge Hospitality introduced that it has entered right into a Restructuring Assist Settlement (RSA) with assist from its first and second lien lenders and its current sponsor that will right-size the corporate’s capital construction by changing greater than $1.1 billion in debt to fairness, and infuse $100 million in new capital, strengthening the corporate’s monetary place.
Pursuant to the transaction contemplated by the settlement, which has the assist of greater than 80 p.c of the corporate’s first lien lenders, 100% of its second lien lenders, and its current sponsor, Aimbridge’s whole debt excellent can be diminished to a most of $210 million at shut from $1.3 billion. This transaction can be facilitated by the corporate’s present first lien lenders, which would offer a $100 million capital injection and turn into majority house owners of the corporate, constructing on their long-term dedication to Aimbridge and reflecting their confidence in Aimbridge’s robust future and enterprise technique.
“We’re excited to announce an settlement that may remodel our stability sheet and put Aimbridge in an extremely robust place to speed up our long-term technique and proceed delivering top-of-the-line providers to our resort house owners,” mentioned Craig S. Smith, CEO, Aimbridge Hospitality. “Over the previous 12 months, we’ve got been enhancing our differentiated service choices, investing in prime expertise, and making strategic and operational enhancements to drive resort efficiency. We have now a transparent technique and execution plan in place—and with a strengthened stability sheet, we can be even higher positioned to proceed investing in our operational capabilities, profitable new enterprise in current and new markets, and strengthening our main place within the trade.
“In taking this essential step, we’re happy to have the robust assist of our lenders, who share our pleasure concerning the important potential to reinforce worth for our stakeholders, and we respect the continuing dedication of our associates and valued companions. We stay up for persevering with to ship operational excellence, best-in-class visitor experiences, and progressive options to our resort house owners,” Smith concluded.
The implementation course of for the restructuring is underway and is anticipated to be accomplished within the first quarter of 2025. All through this course of, Aimbridge will proceed to function its enterprise as standard. The corporate has liquidity to assist the continuation of its operations and fulfill commitments to associates, resort house owners, model companions, suppliers, and distributors. Particularly, associates will proceed to obtain salaries and advantages within the regular course, and all distributors and suppliers can be paid within the peculiar course of enterprise.
Aimbridge’s government management group will stay in place, with Steve Joyce persevering with to function the chairman of the board, Smith as CEO, and Eric Jacobs as chief international progress officer, with assist from an unbiased board with hospitality and management expertise.