Playa Hotels & Resorts N.V. Announces Secondary Offering of 12,500,000 Ordinary Shares by Selling Shareholders

Rhea-AI Summary

On November 16, 2020, Playa Hotels & Resorts N.V. (NASDAQ: PLYA) announced a secondary offering of 12,500,000 Ordinary Shares by certain selling shareholders affiliated with Farallon Capital Management. The underwriter, BofA Securities, may purchase an additional 1,875,000 shares. As a result, the Farallon Funds will hold approximately 13.5% of Playa's Ordinary Shares post-offering. Importantly, Playa will not receive any proceeds from this sale, and its officers or directors are not participating in the offering.

Positive

• None.

Negative

• Playa will not receive any proceeds from the sale of Ordinary Shares, which could limit its financial flexibility.
• The secondary offering may dilute existing shareholders' equity, depending on demand and pricing.

FAIRFAX, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Playa Hotels & Resorts N.V. (NASDAQ: PLYA) (“Playa”) today announced that certain selling shareholders (the “Selling Shareholders”) affiliated with Farallon Capital Management, L.L.C. (collectively, the “Farallon Funds”) have commenced an underwritten secondary offering of 12,500,000 of our Ordinary Shares. The Selling Shareholders expect to grant the underwriter an option to purchase up to 1,875,000 additional Ordinary Shares. Upon consummation of the offering for the proposed number of shares offered, excluding any exercise of the option described above, the Farallon Funds’ aggregate beneficial ownership interest in Playa will be reduced to approximately 13.5%.  

Playa is not offering any Ordinary Shares in the offering and will not receive any proceeds from the sale of Ordinary Shares by the Selling Shareholders in the offering. In addition, none of Playa’s officers or directors is selling any Ordinary Shares in the offering. 

BofA Securities is serving as sole underwriter for the offering.

The offering of these securities is being made pursuant to an effective shelf registration statement. This offering will be made only by means of a prospectus and prospectus supplement. A copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering and the final prospectus supplement, when available, may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or by contacting: BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC  28255-0001, Attn: Prospectus Department Email: dg.prospectus_requests@bofa.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Playa Hotels & Resorts N.V.
Playa Hotels & Resorts N.V. is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean. Playa owns and/or manages a total portfolio consisting of 21 resorts (8,172 rooms) located in Mexico, Jamaica, and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara Cancun, Hyatt Ziva Cancun, Panama Jack Resorts Cancun, Panama Jack Resorts Playa del Carmen, Hilton Playa del Carmen, Hyatt Ziva Puerto Vallarta and Hyatt Ziva Los Cabos. In Jamaica, Playa owns and manages Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Grande Montego Bay Resort & Spa and Jewel Paradise Cove Beach Resort & Spa. In the Dominican Republic, Playa owns and manages the Hilton La Romana, Hyatt Ziva Cap Cana and Hyatt Zilara Cap Cana. Playa also owns four resorts in Mexico and the Dominican Republic that are managed by a third party and Playa manages the Sanctuary Cap Cana, in the Dominican Republic.  

Forward-Looking Statements
This press release contains “forward-looking statements,” as defined by federal securities laws. Forward-looking statements reflect Playa’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including the risks described under the sections entitled “Risk Factors” in Playa’s Annual Report on Form 10-K, filed with the SEC on February 27, 2020 and Quarterly Report on Form 10-Q, filed with the SEC on November 4, 2020, as such factors may be updated from time to time in Playa’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Playa’s filings with the SEC. Currently, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the adverse effects of the current COVID-19 pandemic on the financial condition, operating results and cash flows of Playa, the airlines that service the locations where Playa owns resorts, the short and longer-term demand for travel, the global economy and the local economies where Playa owns its resorts, and the financial markets. While forward-looking statements reflect Playa’s good faith beliefs, they are not guarantees of future performance. Playa disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Playa (or to third parties making the forward-looking statements).

FAQ

What is the purpose of Playa's recent secondary offering of shares?

Playa's secondary offering is initiated by selling shareholders affiliated with Farallon Capital Management, and it does not involve the company offering new shares or receiving any proceeds.

How many shares are being offered in the Playa Hotels secondary offering?

The secondary offering consists of 12,500,000 Ordinary Shares, with an option for the underwriter to purchase an additional 1,875,000 shares.

What will happen to Farallon Funds' ownership stake after the offering?

Post-offering, the Farallon Funds' ownership interest in Playa will be reduced to approximately 13.5%.

Who is the underwriter for Playa's secondary stock offering?

BofA Securities is serving as the sole underwriter for the secondary offering.