CITY LODGE HOTELS LIMITED - Further announcement relating to the Disposal of East African Hotel Operations and Completion of Re-financing

Further announcement relating to the Disposal of East African Hotel Operations and Completion of Re-financing

City Lodge Hotels Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1986/002864/06) (JSE
share code: CLH ISIN: ZAE000117792)
(“City Lodge” or the “Company”)


FURTHER ANNOUNCEMENT RELATING TO THE DISPOSAL OF EAST AFRICAN HOTEL
OPERATIONS AND COMPLETION OF RE-FINANCING OF FUNDING


Shareholders are referred to the announcements released on SENS on 23 July 2021 (“Terms
Announcement”) and 01 July 2022 (“Unconditional Disposal Announcement”) relating to the
proposed disposal by City Lodge of its East African operations, comprising of its hotels situated in Kenya
and Tanzania (the “Disposals”) and are advised that the gross proceeds from the Disposals as set out
in the Terms Announcement have been received and applied to repay the debt facilities coming due for
repayment within the next 14 months together with the outstanding overdraft.


In addition, the Company has completed the refinancing of its loan facilities with our lenders, at more
favourable terms compared to prior terms, with effect from 30 June 2022. City Lodge has access to
loan facilities of R600 million, and overdraft facilities of R115 million. The total long-term debt facility
utilised has reduced from R720 million in June 2022, to R300 million as at 11 July 2022. The Company
accordingly has access to total short term and long term debt facilities of R415 million and together with
the improved operational performance as outlined in the Voluntary operational update released on
SENS on 20 June 2022, finds itself in a robust operational and financial position.


Bryanston

12 July 2022

Sponsor to City Lodge
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 12-07-2022 05:20:00
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