Rank Group PLC
2 June 2000
The Rank Group Plc announces agreement to sell Universal Studios
Escape
The Rank Group Plc announces that it has agreed terms for the
disposal of its 50% interest in Universal Studios Escape ('USE')
to Blackstone Capital Partners III L.P ('Blackstone') for $275m
(£185m) in cash on closing. There is also a contingent payment
of up to $75m (£50m) depending upon Blackstone achieving a
defined level of return on its investment, measured at the time
of their exit.
Universal Studios Escape is a leading tourist attraction in
Orlando, Florida jointly owned with Universal Studios consisting
of two theme parks (Universal Studios Florida and Islands of
Adventure) and Universal Studios CityWalk, a dining and
entertainment centre. The transaction does not include the
Group's interest in the three hotels adjacent to USE or the
Group's investment in Universal Studios Japan.
The sale is conditional upon consents from certain third parties
and obtaining certain amendments from the lenders under USE's
syndicated debt facility.
In the year to 31 December 1999, Rank recorded a net loss after
interest of £2m from USE. The net book value of USE at 31
December 1999 was £332m.
The proceeds from the sale will be used to reduce Group
indebtedness.
Mike Smith, Rank's Chief Executive, commented:
'We are pleased to have reached this initial agreement with
Blackstone, secured with the co-operation of our partners.
However, there are a number of conditions yet to be met which
means that we still need to temper our expectations at this
stage. We hope that the remaining conditions can be satisfied
within three months.'
Enquiries:
The Rank Group Plc
Ian Dyson, Finance Director - 020 7706 1111
Kate Ellis-Jones, Investor Relations - 020 7535 8031
Blackstone Capital Partners
Howard A. Lipson, Sr. Managing Director - 001 212 583 5844
Universal Studios Recreation Group
Jim Yeager, SVP Public Relations - 001 818 777 1047
Press Enquiries:
Angus Maitland, The Maitland Consultancy - 020 7379 5151
Laura Frost, The Maitland Consultancy - 020 7379 5151
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