Sol Meliá Successfully Places A 340 Million Euro Issue Of Eurobonds

Sol Meliá has successfully placed an issue of eurobones in the European market for a total amount of 340 million euros - 56,571 million pesetas - rather than the 300 million euros initially announced due to particularly strong demand. This is the first time that a Spanish BBB-rated company has used the euromarket to obtain finance.

According to the Vice Chairman of Sol Meliá, Sebastián Escarrer, “the main objective of the operation has been to seek out alternative sources of finance, using new means such as euronotes, to diversify our sources, widen our credit base and reduce risks”.

He also added that “the capital we have obtained will be used to finance part of the purchase of the TRYP hotel chain, and will also be used to convert existing short term-debt to medium-term”.

This issue of bones, quoted on the Luxembourg stock market, has been placed amongst institutional investors mainly from Spain, UK and Germany. The maturity of the euronotes is 5 years with an annual coupon rate of 6.25%.

The syndicate for the placement was lead by Deutsche Bank and also involved the participation of the BSCH, BBVA and Banco Espirito Santo as co-leaders and the Danske Bank, WLB, UBS Warburg and the Bayerische Bank as co-managers.


Sol Meliá: a BBB (stable) rating from Standard & Poor’s:

Standard & Poor’s recently announced a BBB (stable) rating for Sol Meliá, the second best rating amongst hotel companies world-wide, behind only Marriott International, a company dedicated exclusively to hotel management. The rating also makes Sol Meliá the only Spanish hotel company to have achieved such a prestigious rating.

Sol Meliá shares its rating with other prestigious international hotel companies such as Accor or the Hilton Group, and has a superior rating to other companies such as Starwood Hotels & Resorts Worldwide, Choice Hotels International or Four Seasons.

The decision made by Standard and Poor’s is the fruit of a detailed analysis of Sol Meliá‘s financial performance and ratios, the latest investments made by the company and expectations of future performance.

As this successful euronote placement has shown by exceeding expected demand, the achievement of the BBB (stable) rating has increased Sol Meliá‘s capacity to obtain resources from capital markets.

After the purchase of TRYP hotels, Sol Meliá now provides more than 330 hotels in 30 countries.

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