| SAN DIEGO, California - - October 9, 2006 - - Neptune Hospitality Advisors,
acting as exclusive financial advisor, has arranged the senior financing
for the recapitalization of a six property resort hotel portfolio located
throughout Mexico. The portfolio, which included the Hyatt Cancun
Caribe also included additional hotels in Cancun, Cozumel, Acapulco, Los
Cabos and Ixtapa. Neptune arranged the US$103 million floating rate
interest-only loan through an international investment bank. The
borrower is a private Mexican resort ownership and management company.
. 
Hyatt Cancun Caribe Resort �We were able to structure the recapitalization to satisfy a host of strategic and financial objectives including: significantly lowering the overall cost of capital at the corporate level; providing liquidity for future acquisitions; and providing proceeds for significant renovation and expansion of the six resort hotels, thus increasing the room count by almost fifty percent,� commented Gavin Davis, Principal of Neptune Hospitality Advisors. �The transaction was originally scheduled to close in late 2005, until Hurricane Wilma inflicted a significant amount of damage on three of the resorts. Despite the worst hurricane on record in the Atlantic, the transaction was successfully closed.� �There is no doubt that given its complexity and pricing relative to
precedent transactions, that this is the most significant Mexican real
estate transaction ever structured through the U.S. securitized markets.
While precedent transactions involving U.S. loans on Mexican real estate
do exist, the borrowers were generally U.S. domiciled companies, the collateral
were �luxury� hotel assets and the terms were less advantageous than this
financing,� commented Stan Kozlowski, Principal of Neptune Hospitality
Advisors. �We were able to provide the borrower with less expensive
capital than Mexico itself receives as a sovereign nation in the global
markets.�
For more information, contact Michael D. Armstrong, [email protected], or Gavin Davis, [email protected] or view the company website at www.neptuneha.com.
|
