By Paul A. Harris
Portland, Ore., May 2 – Motel One Group priced a €500 million issue of One Hotels GmbH seven-year senior secured notes (B3//BB-) at par to yield 7¾% on Thursday, according to market sources.
The yield came at the tight end of the 7¾% to 8% yield talk. Initial guidance was in the 8% area.
Deutsche Bank and Morgan Stanley are the leads.
The Munich-based low-budget hotel chain plans to use the proceeds to fully fund the acquisition of a 35% stake in the company from Propium Capital Partners.
| Issuer: | One Hotels GmbH
|
| Amount: | €500 million
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| Issue: | Senior secured notes
|
| Maturity: | April 2, 2031
|
| Leads: | Deutsche Bank and Morgan Stanley
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Call protection: | Three years
|
| Trade date: | May 2
|
| Ratings: | Moody’s: B3
|
| Fitch: BB-
|
| Price talk: | 7¾% to 8%
|
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