BGL Successfully Completes $16.3 Million Refinancing for Two Wyndham Hotels

Brown Gibbons Lang & Company (BGL), known for its independent investment banking services, has recently finalized a remarkable refinancing and restructuring deal worth $16.3 million for two Wyndham hotels located in Avon, Ohio, and Noblesville, Indiana. This strategic move is set to enhance the operational capabilities and financial stability of both properties, which collectively boast a total of 245 keys.

As the exclusive financial advisor to the ownership group during this transaction, BGL's Real Estate team undertook a multi-faceted approach to ensure a smooth transition of ownership and revitalization of the hotel's financial portfolio. The process involved cooperation with American Bank N.A., which provided necessary bridge financing that played a pivotal role in this undertaking.

The financial restructuring involved crucial navigational strategies to tackle the impending senior loan maturities. BGL worked diligently to negotiate terms related to short-term forbearance, prepayment options, and extensions concerning the in-place bridge financing, while also securing substantial multi-year term senior bridge financing.

In conjunction with their advisory roles, BGL facilitated a capital raise of preferred equity that not only improved the balance sheets for both hotels but also allowed the existing ownership group to address minority interests. This included funding for reserve accounts, essential for maintaining high operational standards at the hotels.

The new financing arrangement with American Bank effectively addresses various high-priority financial obligations, including maturing construction loans and a Small Business Administration 504 loan prepayment. These actions are expected to streamline hotel operations and strengthen the long-term lending relationship between the banks and the hotel group. Zane Smith, Executive Vice President and Chief Banking Officer at American Bank, expressed optimism about the collaborative effort, stating, "We pride ourselves on finding bespoke solutions for our clients' credit needs. This was a complex transaction that required adaptability and innovation, and it was a pleasure to work with the teams at Ceres and BGL to structure a creative lending solution."

BGL's engagement in this refinancing project also comes on the heels of their previous successful closure on the brand conversion of both Wyndham hotels within the evolving hospitality landscape. David Crisafi, President of Ceres Enterprises, acknowledged BGL's pivotal role in orchestrating a beneficial resolution amid challenging market conditions. He stated, "BGL's advisory was fundamental in arranging a solution that supports the positive operational performance at both properties. Their team structured the new issuance efficiently, allowing us to meet critical deadlines."

Ceres Enterprises is recognized as a prominent developer and operator of hotels throughout the Midwest, and their partnership with BGL aims to secure further growth and stability in an increasingly competitive sector. The Orlean Company, deeply rooted in Ohio's real estate landscape, complements this venture with its extensive experience in diverse commercial real estate.

As a prominent player in the middle market real estate investment banking scene, BGL specializes in a wide array of services including advisory, debt structuring, financial restructuring, and equity placement. Their commitment continues to lie in fostering strategic alliances between real estate owners and capital providers to empower growth and enhance investment potential.

This refinancing deal not only signifies a vital step in securing the financial future of the two Wyndham hotels, but it also exemplifies BGL's unwavering support towards facilitating operational excellence within their client's portfolio.

About BGL and American Bank

Brown Gibbons Lang & Company, with offices across major cities in the United States, is dedicated to providing comprehensive advisory services to both private and public entities. American Bank, operational since 1974, prides itself on offering tailored solutions that cater to their client's financial needs across various sectors.

In conclusion, as BGL continues to navigate complex financial landscapes, the successful refinancing of these Wyndham hotels stands as a testament to its expertise and commitment to its clients, setting a promising path for future endeavors.