Hoteles City Express Announces Refinancing of Three Credit Lines with a $3,827 Million Pesos Simple Syndicated Term Loan and the Intention to Raise Capital Through a Share Subscription Offer

Mexico City, June 24^th, 2021 – Hoteles City Express, S.A.B. de C.V. (“Hoteles City Express”) (BMV: HCITY), is pleased to announce that it has signed a credit agreement for  $3,827,000,000.00 (three thousand eight hundred and twenty seven million pesos 00/100 M.N.) with its main bank creditors, in order to refinance its debt.

The new credit facility matures in 2026, has a 12 month grace period, and bears interest at a variable rate, with standard terms and conditions for this type of transaction. This transaction will not increase the outstanding debt of Hoteles City Express.

This refinancing improves the company’s debt maturity profile and capital structure and will allow it to continue operating with greater flexibility as the economy recovers.

In addition, in line with Hoteles City Express’s efforts to strengthen its balance sheet, a capital increase of up to $1,300,000,000.00 (one billion three hundred million pesos 00/100 M.N.) through a share subscription offer will be submitted to shareholders for approval. The subscription price of the capital increase, which was authorized by the Board of Directors, will be $7.00 (seven pesos 00/100 M.N.) per share for current shareholders, who will have preferred subscription rights. The corresponding call for an Ordinary Stockholders’ Meeting will be published in the next few days.

“We thank our bank creditors and investors for the trust they have placed in the Company. The results obtained to date, and the rapid recovery of the business, reflect the strength of both the portfolio and the City Express brand. With the refinancing and strengthening of its balance sheet, the Company will be able to take advantage of the opportunities that the hotel sector recovery will bring,” said Luis Barrios, CEO of City Express Hotels.

Miranda Newswire – Full Press Release: Download PDF

Investor Relations Contact Details

Héctor Vázquez
Corporate Finance and IR
Tel: +52 (55) 5249 8067
E-mail: hvazquez@hotelescity.com 

Ana María Ybarra
Miranda IR
Tel: +52 (55) 3660 4037
E-mail: ana.ybarra@miranda-ir.com 

About Hoteles City Express

Hoteles City Express believes it is the leading and fastest-growing limited-service hotel chain in Mexico in terms of number of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City Express specializes in offering high-quality, comfortable, and safe lodging at affordable prices via a limited-service hotel chain geared mainly towards domestic business travelers. With 153 hotels located in Mexico, Costa Rica, Colombia and Chile, Hoteles City Express operates five distinct brands: City Express, City Express Plus, City Express Suites, City Express Junior and City Centro, to serve different segments of its target market. In June 2013, Hoteles City Express completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol “HCITY” furthermore, on October 8, 2014, Hoteles City Express completed a follow on with the aim of accelerating its growth in new hotels over the next few years.

At Hoteles City Express we seek to be a catalyst for positive economic, social, and environmental impacts in each of the communities where we operate, incorporating innovation and comprehensive development of these through the creation of long-term value. All the hotels in the chain have been built to meet international certification standards. As for our Social Responsibility initiatives, Hoteles City Express focuses on high impact projects that generate value for society and increase the social and economic well-being of communities. For this reason, it concentrates its efforts on supporting initiatives related to entrepreneurship and social bonding that generate long-term, sustainable benefits.

For further information, please visit our website: https://www.cityexpress.com/inversionistas/
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