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Monday 07 May, 2012

Thunderbird Resorts Inc.

Thunderbird Resorts Inc.: $13.6 Million Sale of...

Thunderbird Resorts Inc.: $13.6 Million Sale of Non-Strategic Hotel; $9.5 Million Pay Down of Senior Debt

Thunderbird Resorts Inc. / Thunderbird Resorts Inc.: $13.6 Million Sale of Non-Strategic Hotel; $9.5 Million Pay Down of Senior Debt . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

PANAMA, REPUBLIC OF PANAMA--(Marketwire - May 6, 2012) - Thunderbird Resorts Inc. ("Thunderbird" or "Group") (FRANKFURT: 4TR)(EURONEXT: TBIRD) announces that it has sold its non-strategic El Pueblo Resort & Convention Center in Lima, Peru ("El Pueblo") for approximately $13.6 million. This hotel generated approximately $602 thousand in EBITDA in 2011 or just 3% of the Group's consolidated adjusted EBITDA. Approximately $9.5 million of the proceeds from the sale have immediately been used to pay down Peru senior debt principal balances. The remaining proceeds from the sale of El Pueblo will be used to pay other debt, taxes and transactional costs.

The Group's gross debt(1) as of December 31, 2011 was $78 million, meaning that gross debt has now been reduced to approximately $69 million or 3.6X adjusted EBITDA. The Group has aggressively reduced debt in order to: a) build a balance sheet and capital structure to mitigate risk, improve bankability and support investments in growth; and b) reduce financing costs to improve cash flow and profitability. The Group reduced financing costs from $18.1 million in 2010 to $11.5 million in 2011. With the further $9.5 million in senior debt pay down, scheduled amortizations and other refinancings announced in late 2011 and in 2012 year-to-date, the Group expects financing costs to reduce further during 2012.

(1) "Gross debt", previously called "debt from continuing and discontinued operations", is defined as the aggregate of borrowings, obligations under leases and hire purchase contracts and derivative financial instruments, associated with the Group's continuing, discontinued and held for sale segments.

ABOUT THE COMPANY

We are an international provider of branded casino and hospitality services, focused on markets in Asia and Latin America. Our mission is to "create extraordinary experiences for our guests". Additional information about the Group is available on its World Wide Web site at www.thunderbirdresorts.com.

Cautionary Notice: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Group are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Group's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Group's documents filed from time-to-time with the AFM and other regulatory authorities.

 

Contacts:
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
00+ (507) 223-1234
[email protected]
www.thunderbirdresorts.com




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Source: Thunderbird Resorts Inc. via Thomson Reuters ONE

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