Thunderbird Seeks Peru PE Raise

Thunderbird Resorts, a provider of branded casino and hospitality services, says it has recently sold a hotel in Peru for $8.4m. Proceeds were used to cut senior bank debt to around $19m and the company says it is looking to do a private equity offering for its Peru hotel, casino and slot parlor operations. If successful, it plans to establish all operations under a “to be formed” holding company. “This new structure calls for an equity investment sufficient to pay down a significant portion of the total debt on the Group’s casino and hotel properties in Peru,” it adds. It is also reviewing possible longer term refinancing scenarios as a possible solution to address short-term cash requirements. “The sale and refinancing efforts along with the equity raise will continue simultaneously,” says the group. Thunderbird had previously announced marketing to sell 4 of its 6 Thunderbird Hotels properties in Peru, including the one sold recently. The plan was to use the net sale proceeds to pay down the senior bank debt and other mezzanine debt, while not selling the 2 properties that include casinos. Thunderbird says that while efforts to sell 3 of the remaining 5 hotels continue, the offers it is receiving do not reflect the full valuation at operating levels. Thunderbird focuses on markets in Central and, South America, Southeast Asia and India.