April 29, 2012
Willkie advises Centerbridge Partners, TPG Opportunities Partners and Fidelity Investments in the conclusion of a year-long multinational restructuring of resort operator Kerzner International Limited.
On April 27, Willkie clients Centerbridge Partners, TPG Opportunities Partners and Fidelity Investments concluded a year-long multinational restructuring of resort operator Kerzner International Limited. As part of the transaction, Kerzner sold its 50% interest in the Atlantis, the Palm resort located in Dubai, to joint venture partner Istithmar World PJSC, for approximately $250 million, and used the proceeds to repay a portion of the loan held by Willkie's clients. Kerzner also transferred its ownership interest in the Atlantis, Paradise Island and One&Only Ocean Club resorts in the Bahamas to an affiliate of Brookfield Real Estate Financial Partners, which assumed the remaining approximately $2.6 billion in debt securing those properties. Kerzner will also transfer its ownership interest in the One&Only Palmilla resort in Mexico, which also secured the debt assumed by Brookfield, at Brookfield's election post closing. Willkie's clients also funded a new $15 million loan to Kerzner and will have a 15% ownership interest in the company. Kerzner owns and/or operates luxury resorts in the Bahamas, South Africa, China, Dubai, the Maldives, Morocco, and Mauritius under the Atlantis, One&Only and other brands.
The transaction was handled by Business Reorganization and Restructuring partners Matthew Feldman and John Longmire, Corporate partners William Hiller and Rosalind Fahey Kruse, Tax partner Richard Reinhold and Real Estate partner Thomas Henry; and associates Carly Glover, P. Joshua Deason, Jared Jamesson, Julian Golay, Michael Hilkin and John Knapke.
