Becker Glynn represents International Finance Corporation in $70 Million Financing of Hotel Company in the Dominican Republic

The Firm represented International Finance Corporation (IFC), the private sector arm of the World Bank Group, as international transaction counsel in connection with $70 million long-term credit facilities to a hotel group located in the Dominican Republic that were concluded in December 2004.

The main credit facility – provided to Occidom B.V. and certain other Occidental hotel group companies involved in Dominican hotel operations – consisted of a $50 million loan, composed of a $10 million “A” loan for IFC’s account and a $40 million “B” loan funded by the participation of a number of Spanish banks. A separate $20 million “C” loan was made by IFC to Occidental Hotels Management, B.V., the Dutch holding company for the Occidental hotel group.

The financing provided by IFC is to be used by the group to re-capitalize three existing hotels in the Dominican Republic, as well as to refurbish and upgrade one of the three hotels.

The Firm’s representation of IFC during the transaction included advice during negotiations, drafting of the loan agreements and related documentation, and creation of an offshore escrow account for the repayment of existing lenders and release of related security. The Firm also worked closely with counsel in the Dominican Republic to establish the security for the loans, including mortgages and security interests in other collateral located in the Dominican Republic.