Banking sources say iconic Palm resort will use funds to refinance existing debt
Atlantis, The Palm, is raising an $850m syndicated loan to refinance existing debt and provide new funds, banking sources have said.
Dubai's iconic island resort is refinancing a $700m, 12-year term loan that was signed in July 2005 and priced at 160 basis points (bps) over LIBOR.
That loan backed the construction of the luxury hotel resort and aquatic theme park.
Atlantis, The Palm, opened in September 2008 as a joint venture between Kerzner International Holdings Limited and UAE holding company Istithmar.
In April 2012, Istithmar acquired Kerzner's 50 percent stake in the property for $250m. The property continues to be managed by Kerzner International Resorts.
The new $850m loan refinancing is being led by Barclays and HSBC with Abu Dhabi Commercial Bank (ADCB), National Bank of Abu Dhabi (NBAD), Commercial Bank of Dubai and Union National Bank, the bankers said.
The loan was launched to a wider syndication on Wednesday and a bank meeting will be held in Dubai next week, the bankers said.
Syndication is expected to be completed by mid June and the loan is expected to be signed by the end of June, they added.