It is a first lien loan structured in several tranches for a total of over 85 million dollars, the facility subscribed in 2018 by Ares Capital Management to finance Cipriani Usa Inc, that Il Sole 24 Ore.revealed a few days ago.
According to the latest file to the SEC filed by Ares Capital, infact, the facility consists of a first lien secured loan disbursed between May and November 2018, maturing in May 2023 in four tranches with a variable coupon equal to the Libor rate plus 8% (of which 2 & in PIK form, i.e. with capitalization at maturity): one of 3 millions paying a 10.34% coupon, one of 12 millions with a 10.35% coupon, another one of 3 millions with a 10.38% coupon and one of 67.8 millions paying 10, 34%. The transaction followed Cipriani USA Inc’s search for total funding of 120 million dollars at the end of 2017, again according to a file filed with the SEC at the time.
Cipriani USA Inc is the US company of the Italian Cipriani group, owner of iconic Harry’s Bar in Venice. Harry’s Bar, opened in 1931, is known to be frequented and loved by kings, queens, intellectuals and actors such as Ernest Hemingway, Truman Capote, Peggy Guggenheim, Orson Welles, Katherine Hepburn. In New York alone Cipriani owns 4 restaurants, 2 hotels and 6 event rooms.
We recall that Blue Skye invested in the Cipriani group: in 2012 it restructured 6 million of Harry’s Bar debt and bought 16% of the capital of the Cipriani family holding (see here a previous article by BeBeez).
