What is the new funding secured by Soho House?

Soho House secured approximately $200 million in alternative funding commitments.

Who is acquiring Soho House and for how much?

A group led by MCR Hotels is acquiring Soho House for an implied enterprise value of $2.7 billion.

Why did Soho House need new funding commitments?

The previous funding arrangement fell through, necessitating new commitments to close the acquisition deal.

Home / Business and Economy / Soho House Secures New Funding to Go Private

Soho House Secures New Funding to Go Private

16 Jan

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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 Secures New Funding to Go Private

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.