Fairmont sets Thursday retail launch for $3.7175 billion facility

By Sara Rosenberg

New York, May 16 - Fairmont Hotels & Resorts Inc. has scheduled a general syndication bank meeting for Thursday morning to launch its proposed $3.7175 billion credit facility to retail investors, according to a market source.

Citigroup, Credit Suisse and Eurohypo are the lead banks on the deal, with Citi the left lead.

The facility consists of a $300 million revolver talked at Libor plus 135 basis points, a $2.6525 billion term loan A talked at Libor plus 135 bps, a $465 million term loan B and a $300 million term loan C, the source said.

The pro rata portion of the credit facility was already launched to senior managing agents in April.

Proceeds from the credit facility are being used to help fund the recently completed purchase of Fairmont by Kingdom Hotels International and Colony Capital at a price of $45.00 per share in cash.

As part of the acquisition, Kingdom and Colony combined the Fairmont and Raffles Hotels & Resorts portfolios, transforming the companies into a luxury global hotel leader with 120 hotels in 24 countries. Fairmont remains an independent hotel management and ownership company with headquarters in Toronto, and Raffles, based in Singapore, also retains its independent brand identity.

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