Paska Hotels Private Limited has raised US$11 million in structured debt financing

August 2024 — Paska Hotels Private Limited has completed a fundraising of US$11 million in structured debt.

The company has a strong presence in the hotel industry. Its assets include one operating hotel in Goa, India, with 135 rooms, as well as the soon-to-be-opened hotel property in Bangalore, India, with a proposed 209-room capacity. In addition to this, the promoter is engaged in OFC maintenance services.

The group had been faced with significant financial challenges and needed a solution to refinance existing debt. A bullet payment was due in the intermediate term and the debt-to-EBITDA ratio was relatively stretched. The mandate was to convert this debt into a sustainable structure with extended tenure.

Our role in the transaction

Oaklins’ team in India successfully orchestrated a strategy to refinance the debt owed to the existing lender from tier-I NBFCs, securing improved pricing and extended repayment terms. This approach was specifically designed to alleviate short-term liquidity pressure and enhance cash flow stability. The solution provided the client with a financial cushion to support future growth and stability, effectively easing past financial strains and enabling a positive trajectory for operational and financial recovery.