Dubai’s Atlantis Operator Kerzner Signs $145m Loan Refinancing

Kerzner sold its stake in Dubai’s Atlantis resort to state-owned Istithmar World for $250 million.

Kerzner International Hotels Limited, which operates hotels including Dubai’s Atlantis resort, has signed a $145 million loan refinancing, the company said in a statement on Tuesday.

Kerzner, which completed a $2.6 billion debt restructuring in April last year, said the new loan refinancing was part of its strategy to reduce financial obligations.

“The move will significantly reduce interest costs to the company, extending its debt maturity profile to five years and allowing it to reinvest in growth projects,” the statement said.

Deutsche Bank underwrote the loan before selling portions of the debt to Abu Dhabi Commercial Bank, Ahli United Bank, Emirates NBD and Doha Bank during a syndication phase.

Kerzner sold its stake in Dubai’s Atlantis resort to joint venture partner Istithmar World, a unit of state-owned flagship conglomerate Dubai World, for $250 million.

Under its restructuring plan, Kerzner exchanged its stakes in two hotels in the Bahamas – Atlantis Paradise Island and One&Only Ocean Club – for $175 million of debt owned by Brookfield Asset Management Fund, as well as rearranging other debt facilities.