Hogan Lovells advises on the €211.5m long-term syndicated financing of Atom

Hogan Lovells has advised Atom on the long-term syndicated financing for €211.5 million

Atom, the first listed real estate investment company (Socimi) specialized in hotels in Spain, has successfully closed a long-term syndicated financing for 211.5 million euros led by BBVA and Santander and in which a total of ten financial institutions have participated. This important transaction has been carried out at a time when financial conditions are being influenced by rising interest rates in both Europe and the United States.

Cristina Ferrer and Laura Wouters also participated in this transaction, led by Alejandro González Álvarez, counsel of banking.

The 211.5 million euros financing has been structured as a loan that includes a tranche of close to €13 million to finance improvements to the portfolio with the aim of raising sustainability standards and meeting environmental, social and governance (ESG) criteria. The loan maturity is seven years, with a payment at maturity of 85% of the principal and a margin of 2% over Euribor (lower margin than the previous syndicated loan). Additionally, 85% of the drawn down debt has been hedged in order to mitigate the risk of future interest rate volatility.