Travelodge (UK)

1985

Private

Status: Performing

All payments are on time

All covenants met

BACK TO MARKET


Amount

£290,000,000

Current Yield

7.6%

*
Estimated Yield to Maturity

6.6%

**
Maturity Date

15 May 2023

Interest Payment Frequency

6m

Next interest payment

15 Nov 2017

Asset Security

First ranking charge over company assets

Industry Type

Hospitality

Next Call

15 May 2019 at 104.25
15 May 2020 at 102.125
15 May 2021 at 100

ISIN

XS1403611608


Business Description

Founded in 1985, Travelodge is the second largest hotel brand in the United Kingdom based on number of hotels and number of rooms operated. They lease, franchise, manage and own over 525 hotels and more than 39,000 rooms throughout the United Kingdom, Spain and Ireland. Travelodge operates in the attractive mid-scale and economy (“MS&E”) sector of the hotel market (as defined by STR) and are positioned as a low-cost operator, offering standardized, modern guest rooms at affordable prices to both business and leisure customers. Travelodge's brand currently has brand recognition of over 90% among the UK population (as measured by a YouGov brand tracking survey). They had 18 million customers in 2015 and employ approximately 10,000 people.


Capital Structure

Source: Public Company Information
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* This is the estimated return an investor can expect to receive over the next 12 months expressed in percentage terms. It is the sum of the expected interest payments over the year and where the coupon is partly dependent on Libor uses market based Libor forecasts at each coupon date and also takes into account the Note's current price. It is gross of taxation and our Service Fee. The current yield is therefore an estimated return only and is not guaranteed and may be revised in the future.
** This is an estimated annualised return gross of taxation and our Service Fee assuming the investment is held to maturity. It equates the present value of expected future interest payments of a Note into an annual yield across its life relative to the Note's current price. Where the interest coupon is partly dependent on Libor it uses market based forecasts of Libor and assumes that all interest is re-invested at a rate equal to the Yield to Maturity. For floating rate coupons because current market based forecasts are for Libor to increase in future years the calculation of Yield to Maturity assumes the interest paid to investors will be higher in future years. However, there is no guarantee that the Bank of England will raise interest rates or that Libor will increase as a result. In addition, any changes to the financial circumstances of the company or changes in the economic terms of the underlying loan could also impact future interest payments. The Yield to Maturity is therefore an estimated return only and is not guaranteed.

Status: Performing


Notes:

The company currently has no outstanding notes.

Capital at risk. No FSCS cover. See Risk Statement.

 

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