PARADISE ISLAND, Bahamas, April 27, 2012 -- Kerzner International Holdings Limited, through its subsidiaries (collectively, "Kerzner" or the "Company"), a leading international developer and operator of destination resorts, casinos and luxury hotels, today announced that it has concluded its comprehensive restructuring to improve its capital structure and position it for sustainable, long-term growth as a global management company. As part of the restructuring, Kerzner has completed a transaction with the lenders to its Bahamian assets, including a fund managed by Brookfield Asset Management ("Brookfield Fund"), whereby Brookfield Fund has assumed ownership of these assets. As part of the transaction, Brookfield Fund has exchanged approximately $175 million of debt for Kerzner's equity interests in the Bahamian companies. Kerzner will continue to manage Atlantis Paradise Island and One&Only Ocean Club.
In addition, Kerzner has completed its previously announced agreement
with its corporate lenders to amend its operating company debt
facility. In connection with its operating company restructuring,
Kerzner today announced that it has completed a transaction to sell its
50% ownership interest in Atlantis The Palm to its co-owner, Istithmar
World PJSC ("Istithmar") for $250 million, the proceeds of which have
been used to reduce Kerzner's operating company indebtedness. Following
the closing of this transaction, Kerzner will continue to manage
Atlantis, The Palm pursuant to a multi-year management agreement.
The completion of the global restructuring allows Kerzner to continue
focusing on its role as a management company (with significantly
reduced indebtedness) under which it will continue to own the Atlantis
and One&Only brand names and retain the right to develop additional
resort properties under these names.
"We are pleased to have reached a successful conclusion to our
comprehensive restructuring, which significantly strengthens the
Company's financial profile," said Sol Kerzner, Chairman of Kerzner
International. "With substantially less debt and a more flexible
operating structure, Kerzner is well positioned for sustainable
long-term growth as a global management company. We are committed to
working together with Brookfield Fund, Istithmar and our other partners
to continue blowing away our customers at all of our resorts and
properties around the world. Kerzner, Brookfield Fund and Istithmar are
aligned with regard to the best interests of the business moving
forward including: keeping future capital expenditures and maintenance
levels consistent with years past; maintaining current employment
levels and investing the same level of resources into local and
international marketing to support tourism in The Bahamas and Dubai."
"Today's announcement significantly accelerates our strategy of
shifting from an owner and operator to a management company and allows
us to focus on managing all of our resorts and properties," said Alan
Leibman, Chief Executive Officer of Kerzner International. "Kerzner
will remain in control of all aspects of running its properties and it
will continue to operate seamlessly as it always has. We look forward
to working with our business partners to provide our guests with an
unparalleled experience. We can now focus our attention on growing The
Atlantis and One&Only brands around the world. As always, we would
like to thank our all of our employees for their hard work and
continued commitment to Kerzner."
"We are thrilled to have concluded these transactions with our lenders,
including Brookfield Fund," said George Markantonis, President and
Managing Director, Atlantis, Paradise Island, Bahamas. "The transaction
in the Bahamas is a very positive development for Kerzner and we look
forward to continue investing in these regions for many years to come."
Brookfield Asset Management is a global asset manager with
approximately $150 billion in assets and has an over 100-year history
of owning and operating assets with a focus on real estate,
infrastructure, renewable power and private equity. With decades of
operating experience and over $83 billion of property assets they have
developed an expertise in real estate investments that spans the globe.
Istithmar is a premier investment company with an international
portfolio, including a broad group of hotels and commercial properties.
Istithmar primary focus is on maximizing value and asset appreciation
through a diverse portfolio.
Kerzner International has retained Kirkland & Ellis LLP as legal
counsel and Blackstone as financial advisor.
Kerzner International Holdings
Limited, through its subsidiaries, is a leading international
developer and operator of destination resorts, casinos and luxury
hotels. Kerzner's flagship brand is Atlantis, which includes Atlantis,
Paradise Island, a 2,317 room ocean-themed destination resort in The
Bahamas, as well as The Cove Atlantis and The Reef Atlantis in The
Bahamas and Atlantis, The Palm, Dubai, a 1,500-room, water-themed
resort on The Palm, overlooking the Arabian sea and mainland Dubai.
Under the One&Only brand, Kerzner also manages seven of the
top-rated luxury resort properties in the world, located in The
Bahamas, Mexico, Mauritius, the Maldives, South Africa and Dubai.
Kerzner recently announced plans to develop and operate a new
One&Only resort on Tufu Bay in Sanya, Hainan, China, anticipated to
begin welcoming guests in early 2014. Additionally, the Mazagan Beach
Resort, a 500-room destination casino resort in Morocco, is also
operated by Kerzner. For more information concerning Kerzner and its
operating subsidiaries, visit kerzner.com.