Diamond Resorts International Closes $150 Million Incremental Term Loan Under Its Senior Secured Credit Facility
December 04 2015 - 3:17PM
Business Wire
Diamond Resorts International, Inc. (NYSE:DRII) announced today
the completion of the Second Amendment and First Incremental
Assumption Agreement (the “Second Amendment”) to the Company’s
existing Credit Agreement. The Second Amendment provides for a $150
million incremental term loan made as part of the Company’s senior
secured credit facility, which had an outstanding balance of
approximately $425 million prior to the incremental term loan
facility. The Company received approximately $144 million in
proceeds on the closing which was issued with 2.0% original issue
discount and bears the same maturity date of May 9, 2021, and
interest rate as the term loans in the existing senior secured
credit facility. That interest rate, at Diamond Resorts’ option, is
LIBOR plus 450 basis points, with a one percent floor, or an
alternate base rate plus 350 basis points.
In addition, the Second Amendment amended the Credit Agreement
to, among other things, (1) provide that the 50% sweep of Excess
Cash Flow (as defined in the Credit Agreement) will step down to a
25% sweep of Excess Cash Flow when the Secured Leverage Ratio (as
defined in the Credit Agreement) is greater than 1.5:1 (rather than
1:1 as originally set forth in the Credit Agreement), but equal to
or less than 2:1 (rather than 1.5:1 as originally set forth in the
Credit Agreement), and there will be no sweep of Excess Cash Flow
when the Secured Leverage Ratio is equal to or less than 1.5:1
(rather than 1:1 as originally set forth in the Credit Agreement),
and (2) include a soft call at 1.01 for a period of six months
following the effective date of the Second Amendment.
The proceeds of the incremental term loan, which replace a
substantial portion of the approximately $167.5 million in cash
paid by the Company in its previously disclosed acquisition of the
vacation ownership business of Gold Key Resorts, will be used for
general corporate purposes and to pay costs related to the closing
of the transactions contemplated by the Second Amendment.
About Diamond Resorts International®
Diamond Resorts International® (NYSE: DRII), with its network of
more than 350 vacation destinations located in 34 countries
throughout the continental United States, Hawaii, Canada, Mexico,
the Caribbean, South America, Central America, Europe, Asia,
Australasia and Africa, provides guests with choice and flexibility
to let them create their dream vacation, whether they are traveling
an hour away or around the world. Our relaxing vacations have the
power to give guests an increased sense of happiness and
satisfaction in their lives, while feeling healthier and more
fulfilled in their relationships, by enjoying memorable and
meaningful experiences that let them Stay Vacationed.™
Diamond Resorts International® manages vacation ownership
resorts and sells vacation ownership points that provide members
and owners with Vacations for Life® at over 350 managed and
affiliated properties and cruise itineraries.
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version on businesswire.com: http://www.businesswire.com/news/home/20151204005826/en/
Media:Diamond Resorts International, Inc.Stevi Wara,
1-702-823-7069Fax:
1-702-684-8705media@DiamondResorts.comorInvestors:Sloane &
CompanyErica Bartsch, 1-212-446-1875ebartsch@sloanepr.com
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