by AKANI CHAUKE
JOHANNESBURG – SOUTH Africa’s City Lodge Hotels has confirmed payments received from the sale of its operations in East Africa.
The hotels are in Kenya and Tanzania.
The disposals became effective June 30. The Johannesburg Stock Exchange (JSE) – listed City Lodge has provided an update to shareholders.
Shareholders are advised that “the gross proceeds from the Disposals as set out in the Terms Announcement have been received and applied to repay the debt facilities coming due for repayment within the next 14 months together with the outstanding overdraft.”
In addition, the hospitality company has completed the refinancing of its loan facilities with its lenders with effect from June 30, 2022.
City Lodge has access to loan facilities of R600 million and overdraft facilities of R115 million.
The total long-term debt facility utilised has reduced from R720 million in June 2022, to R300 million as at July 11 2022.
The company accordingly has access to total short term and long term debt facilities of R415 million.
Together with the improved operational performance as outlined in the voluntary operational update released on June 20, 2022, City Lodge said it finds itself in a robust operational and financial position.
The company stated the refinancing of its loan facilities was at more favourable terms compared to prior terms.
– CAJ News