NH Hoteles has made a 5-year strategic plan to better capitalize on its strengths, with priorities ranging from building a new client value proposition to improving management capabilities. The group plans to improve margins by transforming its distribution model, client relationship management, and loyalty rewards. A debt restructuring was thus needed in order to fund the plan.The group's debt restructuring involves three major steps. First, it has formalized the issuance of bonds for a nominal 250 million euro with a five year maturity period, convertible into ordinary shares. At the same time, the company has issued 250 million euro of NH Hoteles senior secured notes with a six-year maturity period.With the funds from these two operations and the 200 million euro from a loan to company subsidiary NH Finance, S.A., NH Hoteles will have 700 million euro to amortize its obligations under its 2012 loan and other financial operations, thus completing the third part of its restructuring. 200 million euro will then be available to fund the group's strategic plan.
Spain
