Following its successful initial public offering in December last year, the Compass Hotel Group has secured a five year debt facility with St George Bank worth $97 million.
An interest rate hedge has been entered into via a SWAP Agreement which secures a rate of 7.89 per cent over the facility term.
The rate is below Compass' projected rate of 7.95 per cent, as detailed in the offer document issued by Compass in the IPO of 123 million stapled securities at $1 each to retail and institutional investors.
The commercial bill draw-down facility is scheduled to be completed by February 1, 2008.
Managing Director, Bryan Northcote, said "We are delighted to have struck a very competitive rate for this debt facility following what was a hotly contested tender process. We look forward to working with St George as a financing partner as we develop the group further in the Australian hotel market following the completion of the acquisition of hotels in Western Australia".
Compass secured a portfolio of 12 hotel and tavern properties late last year including Cottelsoe's Albion Hotel, the Carine Glades Tavern in Duncraig, the Kalamunda Hotel and the Herdsman Lake Tavern.
