Sagicor Welcomes Playa Announcement of US$224m Financing Package

June 17, 2020

Via LOOP Jamaica

Sagicor Group has welcomed the announcement that Playa Hotels and Resorts has secured additional financing of US$224 million. 

Playa owns and operates the Hyatt Ziva and Zilaria hotels, as well as the Jewel Paradise Cove and Hilton Rose Hall resorts in Jamaica. Sagicor owns 15 per cent of Playa Hotels and Resorts via subsidiary Sagicor X Fund. 

The conglomerate on Friday revealed that Playa Resorts and Hotels recently raised US$204 million of additional debt financing and sold US$20 million of its ordinary shares in a private transaction. This is total additional financing of US$224 million.

Playa has been on the hunt for liquidity support since conditions under COVID-19 caused a downturn in the hotel and travel trade.

Chris Zacca, president and CEO of Sagicor Group Jamaica, said, “This major improvement in Playa’s liquidity profile is certainly great news, and validates Sagicor Jamaica’s confidence that Playa will emerge successfully from the effects of the shutdown of tourism as the sector gradually reopens regionally.”

Playa, in early May, announced that it had entered into a binding agreement with a third party to sell the Jewel Dunn’s River Beach Resort & Spa and the Jewel Runaway Bay Beach Resort and Waterpark for a total consideration of US$60 million in cash.

The sale follows the acquisition of the properties less than two years ago from Sagicor Group Jamaica in exchange for Playa shares.

“With this additional financing significantly improving Playa’s liquidity profile, and only US$85 million in debt maturing in 2022, we look forward to delivering excellent service from the heart and taking market share in the new travel landscape,” said Bruce Wardinski, Chairman and CEO of Playa.

He added, “Our ability to access the capital markets is a reflection of the on-going investor support and our commitment to driving superior returns.”