Dubai Holding Unit Strikes Final Debt Deal
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Dubai Holding, an investment vehicle owned by the emirate's ruler, said Thursday its private equity arm Dubai International Capital has reached an agreement with lenders on a $2.5 billion debt deal, while it is confident that the Dubai Group restructuring will be concluded successfully, The Wall Street Journal reported. Under the terms of the DIC restructuring, lenders will extend $2.15 billion of the debt for five years and receive a 2% cash interest coupon, according to a Dubai Holding statement. The lenders also agreed to extend a second $350 million facility for three years at the unchanged contractual rate of interest. DIC owns stakes in the German alumina company Almatis, the U.K. discount hotel chain TraveLodge, the industrial packaging firm Mauser and the U.K. manufacturer Doncasters Group, among other investments. The company originally reached an agreement with its lenders in November. It had been negotiating with creditors to reorganize its debt after the global recession took a heavy toll on its business. But some of the debt deal terms had to be renegotiated, prolonging the conclusion of an agreement, sources told Zawya Dow Jones in February. Read more. (Subscription required.)