Guocoleisure completes refinancing of expired bonds

It will lift pre-tax hotel operating profit by over 50%.

Guocoleisure has completed the refinancing of its debenture stock, which expired in December 2014.

According to OSK DMG, the GBP 138m issue, issued at coupon rate of 10.75% back in 1989, was redeemed by GLL and refinanced at below 4%.

GBP138m issue, issued at coupon rate of 10.75% back in 1989, was redeemed by GLL and refinanced at below 4%, by our estimates.

“GLL expects interest savings of USD7m for the 6 months ending June 2015, and annual savings should be in the range of USD14m. The re-financing will lift hotel pre-tax operating profit by over 50%. Together with benefits from its on-going room refurbishment programme which has resulted in an uplift in room rates and a targeted brand management and guest satisfaction campaign, we expect the hotel division to put up a stellar performance into FY15 and beyond,” stated OSK DMG.