CPHCL Finance plc - Sale of Panorama Hotel Prague

On 30 August 2019, Corinthia Finance plc announced that on 26 August 2019, its parent company Corinthia Palace Hotel Company Limited (“CPHCL”) concluded a share purchase and sale agreement with a third party in relation to the disposal of its 100% shareholding in Pankrac Property Holdings s.r.o. which, in turn, owns the Panorama Hotel and adjacent garage situated in Prague, Czech Republic. CPHCL will be advancing part of the proceeds from this transaction to Corinthia Finance plc which, in turn, will be redeeming in full the €7.5 million 6% unsecured bonds 2019/22 on 10 October 2019. Corinthia Finance plc also noted that the last trading date in the 6% unsecured bonds 2019/22 will be 2 September 2019. Furthermore, CPHCL will transfer €20 million to a reserve account for the purpose of redeeming part of the €40 million 4.25% unsecured bonds maturing on 12 April 2026.

Meanwhile, on 30 August 2019, Corinthia Finance plc also published an updated Financial Analysis Summary (“FAS”). This shows that the cash consideration for the disposal of the Panorama Hotel and the adjacent garage, including an amount as compensation for working capital balances and after settlement of an outstanding bank loan, amounted to approximately €68 million. Furthermore, the FAS also states that CPHCL will be reporting a profit on disposal of the Panorama Hotel and adjacent garage amounting to €43.8 million. In terms of the share purchase and sale agreement, CPHCL will continue to operate the Panorama Hotel for the next few years and shall pay a lease to the new owner equivalent to 90% of gross operating profit.