Millennium & Copthorne Hotels New Zealand (MCK) has confirmed the renewal of its existing multi-option facility agreement with the Hong Kong & Shanghai Banking Corporation (HSBC).
The agreement has been renewed for a three-year term, extending until January 2027.
The multi-option facility includes a revolving credit facility of up to NZ$115 million and an overdraft facility of up to NZ$5 million.
Under the renewed agreement, the bank facilities will continue to be secured over hotel properties.
In addition to the Millennium Hotel Queenstown and Rotorua, the Copthorne Hotel Queenstown Lakefront has been added as security.
MCK's managing director, Stuart Harrison, said the renewal of the facility and the increase in the limit will support the company's "Revive" strategy.
It will enable the refurbishment and development programme at Millennium Hotels and Resorts, with refurbishments in Queenstown and Rotorua already underway and others scheduled for 2024.
No major changes were made to the expiring terms and covenants, except for minor amendments to align with current market requirements.
Millennium & Copthorne Hotels New Zealand is the only hotel owner-operator listed on the NZX.
It has 18 owned, leased, and franchised hotels in New Zealand under various brands.
The company is also part of the global Millennium & Copthorne Hotels group, which has over 120 properties worldwide.
See more
