Skyline Announces Completion of Sale of 11 Courtyard Hotels
TORONTO, ON / ACCESSWIRE / October 1, 2024 / Pursuant to the immediate reports of May 22, 2024, July 14, 2024, and August 21, 2024 (references: 2024-01-085770, 2024-01-072093, 2024-01-050389, respectively), the Company is pleased to update that on September 30, 2024, agreements for the sale of the Company's 11 Courtyard Hotels (Chicago Arlington Heights, Chicago Deerfield, Chicago Rockford, Birmingham Hoover, Huntsville University Drive, Courtyard Manassas Battlefield Park, Courtyard Lexington North, Courtyard Dayton Miamisburg, Courtyard Little Rock, Courtyard Oklahoma City, Courtyard Toledo Holland) to third parties for $101 million was completed. The transaction was brokered by Marcus & Millichap with Ebrahim Valliani of the Miller-Gomes Hotel Team representing Skyline. Ebrahim can be reached at 630-570-2177 or Ebrahim.Valliani@marcusmillichap.com.
The Company has contracted with another financier for a $20 million credit facility, net of a $2.0 million interest reserve held by the financier, whereby the Company pledged its rights in Courtyard Tucson and Ft. Myers hotels. The interest rate on the loan is at the rate of the Wall Street Journal Prime Interest (WSJP) (currently 8.50%) + 1.00% for the first $14 million, and WSJP+2.25% for the remaining $6 million. Interest will not be less than 7.50% for the first $14 million and 8.50% for the remaining $6 million. The loan will be for a period of 12 months and will be repaid at the end of the period. The Company will have the option to make early repayment of the loan without penalty.
On September 30, 2024, the Company fully repaid its two existing loans which were secured against the sold 11 hotels in the approximate amount of $106M from the proceeds of the completion of the sale of the hotels and the credit facility as aforesaid.
The Company estimates that the net cash flow from the transactions listed above, after settlement of all transaction costs and working capital amounts related to the 11 hotels sold, will be approximately $8 million. The Company will record a loss of approximately USD 8.5 million in its financial statements (without taking into account the tax effects that are still being examined).
Following the completion of the transaction, the Company retained ownership of three Courtyard properties: Ft. Myers, Ithaca and Tucson, which are up for sale.
It should be emphasized that the information contained above in relation to sale process and in relation to expected loss in the books, is forward-looking information as defined in the Securities Law, 5728-1968, based on information held by the Company as of the reporting date. The above information may not materialize, or may be materialized in a manner that will differ materially from what is expected, as a result of information from another examination of the data, changes in the markets, significant regulatory changes, as well as the risk factors with which the Company is coping, as will be published in the Company's periodic and immediate reports.
For more information:
Blake D. Lyon
Chief Executive Officer
blakel@skylineinvestments.com
1 (519) 535-8651
Oded Ben Chorin
KM Investor Relations
+972-3-5167620
oded@km-ir.co.il
SOURCE: Skyline Investments Inc.
View the original press release on accesswire.com
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