"Soho House has secured fresh financing to complete its $1.8 billion take-private deal, stabilising a transaction that had been thrown into doubt just weeks ago. The London-based private members' club group said it has now locked in alternative funding to replace a $200 million shortfall, clearing the way for a consortium led by MCR Hotels to complete the acquisition. In a regulatory filing, Soho House confirmed that Morse Ventures, owned by Tyler Morse, chief executive of MCR Hotels, will provide a $50 million equity commitment."
"The remaining funding has been secured through changes to the group's debt structure and shareholder arrangements. Soho House has amended its financing package with Apollo and Goldman Sachs, increasing its senior unsecured notes facility to $220 million from $150 million. As part of the restructuring, Apollo's equity commitment has been reduced from $50 million to $30 million. The final $50 million gap was bridged after major shareholders agreed to roll over their equity rather than take cash, reducing the total funding required to complete the deal."
Soho House obtained alternative financing to cover a $200 million shortfall and proceed with a $1.8 billion take-private transaction led by MCR Hotels. Morse Ventures will contribute $50 million in equity and MCR will add a further $50 million under its original agreement. The group amended its financing with Apollo and Goldman Sachs, raising the senior unsecured notes facility to $220 million and reducing Apollo's equity commitment to $30 million. Major shareholders rolled over equity rather than take cash, bridging the final $50 million gap. Earlier disclosure that MCR could not meet its commitment had caused share volatility and deal uncertainty.
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