Home / Business and Economy / Soho House Secures New Funding to Go Private
Soho House Secures New Funding to Go Private
16 Jan
Summary
- Soho House shares surged after obtaining new funding commitments.
- Alternative commitments totaling approximately $200 million were secured.
- The deal allows MCR Hotels-led group to acquire Soho House for $2.7 billion.
Soho House shares saw a notable increase in after-hours trading after the company announced it had secured new funding commitments. This development is essential for proceeding with a previously agreed-upon deal to go private, especially after initial funding challenges arose.
The members-only club confirmed it had entered into agreements for about $200 million in alternative commitments. These funds are vital to finalize the acquisition deal initiated in August by a consortium of investors spearheaded by MCR Hotels. The transaction values Soho House at an enterprise value of $2.7 billion, including debt.
Earlier in January, MCR Hotels, a major U.S. hotel owner, faced difficulties fulfilling its original $200 million equity commitment. However, the situation has been resolved with the new financial arrangements, which include a $50 million equity commitment from Morse Ventures and an amended debt commitment letter increasing the senior unsecured notes facility to $220 million.
