Four Seasons details $950 million buyout financing credit facility

By Sara Rosenberg

New York, Feb. 14 - Four Seasons Hotels Inc. released details on its buyout financing, including that there will be a new $950 million senior secured credit facility, according to an SC 13D/A filed with the Securities and Exchange Commission Wednesday.

Citigroup and JPMorgan are the joint lead arrangers on the deal, with Citi administrative agent and JPMorgan syndication agent.

The facility consists of a $200 million revolver and a $750 million five-year term loan, with both tranches expected at Libor plus 125 basis points, the filing said.

The revolver will have a 25 bps unused fee.

Four Seasons is being bought by Cascade Investment, LLC, Kingdom Hotels International, and chairman and chief executive officer, Isadore Sharp, for $82.00 per share. The acquisition values Four Seasons at $3.8 billion, including debt.

The transaction is expected to be completed in the second quarter, subject to shareholder approval, Ontario Superior Court of Justice approval and other customary conditions, including receipt of a limited number of regulatory approvals. The transaction is not subject to any financing condition.

A meeting of shareholders to consider the arrangement is anticipated to take place in April.

Four Seasons is a Toronto-based manager of luxury hotels and resorts.

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