Thunderbird Resorts Inc.: $13.6 Million Sale of Non-Strategic Hotel; $9.5 Million Pay Down of Senior Debt
Thunderbird Resorts Inc. /
Thunderbird Resorts Inc.: $13.6 Million Sale of Non-Strategic Hotel; $9.5
Million Pay Down of Senior Debt
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PANAMA, REPUBLIC OF PANAMA--(Marketwire - May 6, 2012) - Thunderbird Resorts
Inc. ("Thunderbird" or "Group") (FRANKFURT: 4TR)(EURONEXT: TBIRD) announces that
it has sold its non-strategic El Pueblo Resort & Convention Center in Lima, Peru
("El Pueblo") for approximately $13.6 million. This hotel generated
approximately $602 thousand in EBITDA in 2011 or just 3% of the Group's
consolidated adjusted EBITDA. Approximately $9.5 million of the proceeds from
the sale have immediately been used to pay down Peru senior debt principal
balances. The remaining proceeds from the sale of El Pueblo will be used to pay
other debt, taxes and transactional costs.
The Group's gross debt(1) as of December 31, 2011 was $78 million, meaning that
gross debt has now been reduced to approximately $69 million or 3.6X adjusted
EBITDA. The Group has aggressively reduced debt in order to: a) build a balance
sheet and capital structure to mitigate risk, improve bankability and support
investments in growth; and b) reduce financing costs to improve cash flow and
profitability. The Group reduced financing costs from $18.1 million in 2010 to
$11.5 million in 2011. With the further $9.5 million in senior debt pay down,
scheduled amortizations and other refinancings announced in late 2011 and in
2012 year-to-date, the Group expects financing costs to reduce further during
2012.
(1) "Gross debt", previously called "debt from continuing and discontinued
operations", is defined as the aggregate of borrowings, obligations under leases
and hire purchase contracts and derivative financial instruments, associated
with the Group's continuing, discontinued and held for sale segments.
ABOUT THE COMPANY
We are an international provider of branded casino and hospitality services,
focused on markets in Asia and Latin America. Our mission is to "create
extraordinary experiences for our guests". Additional information about the
Group is available on its World Wide Web site at www.thunderbirdresorts.com.
Cautionary Notice: This release contains certain forward-looking statements
within the meaning of the securities laws and regulations of various
international, federal, and state jurisdictions. All statements, other than
statements of historical fact, included herein, including without limitation,
statements regarding potential revenue and future plans and objectives of the
Group are forward-looking statements that involve risk and uncertainties. There
can be no assurances that such statements will prove to be accurate and actual
results could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from the
Group's forward-looking statements include competitive pressures, unfavorable
changes in regulatory structures, and general risks associated with business,
all of which are disclosed under the heading "Risk Factors" and elsewhere in the
Group's documents filed from time-to-time with the AFM and other regulatory
authorities.
Contacts:
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
00+ (507) 223-1234
plesar@thunderbirdresorts.com
www.thunderbirdresorts.com
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originality of the information contained therein.
Source: Thunderbird Resorts Inc. via Thomson Reuters ONE
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