Ropes & Gray Advises Aimbridge Hospitality on Restructuring Support Agreement

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 associate Eric Sherman, employment, executive compensation and employee benefits partners Jenny Rikoski and Doug Brayley, and private capital transactions partners Patrick Dorime and Matt Richards.