Elbit Imaging, the Israeli company that owns Bucuresti Turism, the shareholder of five-star Radisson Blu hotel in Bucharest, has received a EUR 71.5 million refinancing loan for its hotel in Bucharest, from a group of European banks, the company has announced. The loan will be used to pay Bucuresti Turism's (symbol BUTU) current outstanding bank facility and to repay to the company its shareholder loans of EUR 25 million.

The loan will be drawn down in two tranches, with the first tranche in the amount of approximately EUR 62.5 million having been drawn down on September 29, and the second to be drawn down between December 31, 2012 and March 31, 2013, pending certain conditions in the loan agreement.

The loan bears interest at the rate of 3 months Euribor rate (to be hedged from March 2013) plus a margin of 4.6 percent per year. According to the facility agreement, approximately 17 percent of the principal will be paid during the term of the loan in quarterly installments with the remainder to be repaid as a bullet repayment at the end of the term. The final maturity date of the Loan is June 30, 2016.

The loan will be secured by a first-ranking mortgage over the Radisson Blu Hotel, Bucharest and the Centreville Apart Hotel, and other commercial areas within such hospitality complex, as well as a corporate guarantee.

Elbit owns 76 percent in Bucharest Stock Exchange listed Bucuresti Turism through Bea Hotels Eastern Europe BV. The rest of the shares in Bucuresti Turism are owned by SIF Transilvania – 11 percent and other shareholders – 11 percent, according to data valid at the end of June this year

The Radisson Blu Hotel in Bucharest, Romania has 424 rooms. The complex also includes an apartment hotel with 294 apartments, and commercial areas. It was opened in the second half of 2008.

Corina Saceanu, corina@romania-insider.com

(photo source: Radisson Blu)