Carrasco Nobile, concessionaire of the Hotel Casino Carrasco & Spa and subsidiary of the Codere Group, turned to the Uruguayan stock market and approved a debt issuance program, with a view to financing the renovation of the historic hotel and casino.
With Nobilis as a securities intermediary regulated by the Central Bank of Uruguay (BCU), the firm placed its first issue of Negotiable Obligations (ON) last week for a total of USD 7 million.
In a statement, they reported that the debt program was approved by the BCU, for a total of 100 million Indexed Units, equivalent to UYU 635 million or USD 15 million.
The first portion of ON, corresponding to Series 1, was issued at an annual rate of 8.15% in dollars and a term of five years. The subscription was carried out on the Montevideo Stock Exchange and, as they detailed, “the instruments will have amortization in quarterly installments, increasing and consecutive, and will be guaranteed with a guarantee trust”.
They also explained that the resources raised by the operation are mainly destined to finance the iconic Montevideo hotel, which includes “the restructuring of debt, the investment in capex –in long-term assets– and the renovation of slot machines, which will allow an increase in the hotel’s income and gaming rooms”.
It should be remembered that Carrasco Nobile has been the concessionaire of the Hotel Casino Carrasco & Spa since 2013, directly managing the company’s casino. The hotel, for its part, is operated by Accor Hotels Argentina S.A. under the Sofitel brand.
In this context, Nobilis highlighted that the establishment “has had a history of sustained growth” since it reopened its doors in 2021, after the closure caused by the COVID-19 pandemic. Since 2022, they have presented positive net results, with high occupancy rates and a constant increase in casino revenue.
In this regard, the head of Capital Markets at Nobilis, María José Zerbino, said: “It is an excellent investment opportunity with stable income in the medium term and in dollars, participating in the financing of the Hotel Carrasco, an icon of the city of Montevideo.”
“In addition, the simplified regime is the instrument that allows companies, regardless of their size, to obtain financing through this mechanism. It is important that more companies evaluate it as a genuine financing option,” she concluded.
