(Photo: Jewel Dunn's River)

Playa raises US$224 million

(Photo: Jewel Dunn's River)

Playa Hotels and Resorts, owners and operators of the Hyatt Ziva and Zilaria hotels, as well as the Jewel Paradise Cove and Hilton Rose Hall resorts in Jamaica, has raised US$204 million of additional debt financing.

Jewel Runaway Bay, Jamaica. (Photo: Playa Resorts)

The resort group, in which Sagicor Group Jamaica subsidiary Sagicor XFund holds share, said on Friday, June 12, that it sold US$20 million of its ordinary shares in the private transaction.

This provides the company with total additional financing of US$224 million.

One month ago, Playa also announced that it has entered into a binding agreement with a third party to sell the Jewel Dunn’s River Beach Resort & Spa and the Jewel Runaway Bay Beach Resort & Waterpark for a total consideration of US$60 million in cash.

Jewel Dunn’s River in St Ann. (Photo: visitjamaica.com)

The sale comes less than two years after the international report group acquired the properties in St Ann from Sagicor Group Jamaica in exchange for Playa shares.

Sagicor Group Jamaica said on Friday that it welcomes the transaction.

“With this additional financing significantly improving Playa’s liquidity profile, and only US $85 million in debt maturing in 2022, we look forward to delivering excellent Service from the Heart and taking market share in the new travel landscape,” said Bruce Wardinski, Chairman and CEO of Playa.

President and CEO of Sagicor Group Jamaica, Chris Zacca

He added, “Our ability to access the capital markets is a reflection of the on-going investor support and our commitment to driving superior returns.”

Chris Zacca, president and CEO of Sagicor Group Jamaica, and Chairman of Sagicor Real Estate X Fund Ltd., which hold a 15 per cent share of Playa, said, “This major improvement  in Playa’s liquidity profile is certainly great news, and validates Sagicor Jamaica’s confidence that Playa will emerge successfully from the effects of the shutdown of tourism as the sector gradually reopens regionally.”

Sagicor Group Jamaica is a financial services conglomerate.