Ropes & Gray represented Aimbridge Hospitality, a leading, global hotel management company and the world's largest third-party hotel operator, in connection with a Restructuring Support Agreement entered into with its key stakeholders that will right-size Aimbridge’s balance sheet and infuse the business with significant new capital. The transaction will deleverage approximately $1.1 billion in funded debt and infuse $100 million in new capital. The agreement was announced in a press release on January 16.
Pursuant to the transaction contemplated by the agreement, which has the support of more than 80% of the Company's first lien lenders, 100% of its second lien lenders, and its existing sponsor, Aimbridge's total debt outstanding would be significantly reduced to a maximum of $210 million at close from $1.3 billion today, and Aimbridge would have one of the healthiest balance sheets in the industry.
The Ropes & Gray team included business restructuring partners Ryan Preston Dahl, Matt Roose and associate Eric Sherman, employment, executive compensation and employee benefits partners Jenny Rikoski and Doug Brayley, private capital transactions partners Jennifer Harris, Andrea Hwang, Patrick Dorime and Matt Richards, and tax partner Eric Behl-Remijan.
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