12 May 2014
Diamond Resorts International, Inc. (NYSE: DRII) said it has announced the closing of its previously announced USD470m senior secured credit facility with Credit Suisse AG, as administrative agent and collateral agent, which includes a USD445m term loan issued with 0.50 percent of original issue discount and a USD25m revolving line of credit.
Borrowings under the new credit facility bear interest, at Diamond´s option, at a variable rate equal to LIBOR plus 450 basis points, with a one percent LIBOR floor applicable only to the term loan, or an alternate base rate plus 350 basis points.
The company said it used the proceeds of the term loan portion of the new credit facility, as well as approximately USD5.4m of cash on hand, to fund the approximately USD419m redemption amount for Diamond Resorts Corp.´s 12.0 percent senior secured notes due 2018, and to pay off loans of approximately USD19.5m relating to prior strategic acquisitions and pay costs of approximately USD9.7m associated with the refinancing transactions.
Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC acted as lenders, joint bookrunners and joint lead arrangers with respect to the New Credit Facility.
Diamond Resorts International, with its network of more than 300 vacation destinations, provides guests with choices and flexibility as they design their dream vacation. To learn more, visit DiamondResorts.com.
Diamond Resorts International closes USD470m credit facility
12 May 2014