Peermont Global Group, the South African hospitality and gaming group, has announced that it will raise R5.3 billion of new debt and that it has reached agreement with its stakeholders to recapitalise the group.
The new capital structure reduces the debt levels of the group, which will significantly enhance its long-term sustainability and allow for greater flexibility to pursue further growth opportunities.
“This deal is positive for all parties involved including shareholders, debt holders and the company,” said Paul Nkuna, Chairman of Peermont. “The management team will now be able to turn their attention towards exploring growth prospects and unlocking value through projects such as the R325 million Burgersfort development, which is underway and entirely funded from ongoing cash generation. Unlocking our growth potential will support and enhance employment, skills development and continued transformation in the leisure sector.”
Peermont is developing the Thaba Moshate Hotel Casino and Convention Resort in Burgersfort in South Africa’s Limpopo province, approximately four hours’ drive from Johannesburg. The property will consist of a 3-star hotel with 80 rooms, a conference centre, 148-seat restaurant, show bar, teenage entertainment area with video and electronic gaming, child facilities, a pool, terrace and boma, eight gaming tables and 150 slot machines, and is expected to open in the next 18 months.