Burges Salmon has advised HSBC on an £18.4 million debt restructuring and refinancing agreement with leading UK hostel provider Safestay, consolidating its existing loans into a single five-year banking facility.
This will significantly reduce Safestay’s cost of debt and repay all outstanding convertible loans when they become due.
The Burges Salmon team, led by banking partner Richard Leeming and real estate partner Paul Browne, worked across two jurisdictions – England and Scotland – to complete the transaction. This involved refinancing four of Safestay’s hostels; two in London, one in York and one in Edinburgh. Luxury hostels are a rapidly growing part of the UK hotel market.
Richard Leeming commented:
“This is the first transaction we have acted on for the HSBC hotels team and we are pleased that through using a cross-firm and cross-jurisdiction approach, we have successfully seen this matter through to completion."