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Credit Suisse Agents Diamond Resort International’s $470MM Credit Facility

May 12, 2014, 07:48 AM
Filed Under: Hospitality

Diamond Resorts International, Inc. announced the closing of its previously announced $470 million senior secured credit facility with Credit Suisse AG, as administrative agent and collateral agent, which includes a $445 million term loan issued with 0.50% of original issue discount and a $25 million 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 used the proceeds of the term loan portion of the new credit facility, as well as approximately $5.4 million of cash on hand, to fund the approximately $419 million redemption amount for Diamond Resorts Corporation’s 12.0% Senior Secured Notes Due 2018, pay off loans, including accrued interest and fees, of approximately $19.5 million relating to prior strategic acquisitions and pay costs of approximately $9.7 million associated with the refinancing transactions.

The company irrevocably deposited approximately $419 million of the term loan proceeds with Wells Fargo Bank, National Association, as trustee for the Senior Secured Notes to fund a redemption of the Senior Secured Notes on June 9, 2014, pursuant to a Notice of Optional Redemption that was sent to the trustee and holders.

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 located in 34 countries throughout the continental United States, Hawaii, Canada, Mexico, the Caribbean, South America, Central America, Europe, Asia, Australia and Africa, provides guests with choices and flexibility as they design their dream vacation.





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