Hard Rock Las Vegas in danger of missing debt payment

The owner and operator of the Hard Rock Hotel & Casino Las Vegas is facing an August 25 deadline to pay interest owed on its debt under a forbearance agreement with its lender, reports The Deal Pipeline. However, BREF HR LLC told the SEC that it doesn't have the necessary funds to make the payment.

According to an August 12 filing with the SEC, BREF owes $48.6 million in pay-in-kind interest to its lender, Vegas HR Private Ltd., on roughly $911.25 million in debt due March 1, 2018.

The debt is priced at Libor plus 250 basis points with a 1.5-percent floor on Libor. There is also supplemental interest on the debt equal to the greater of 6.5% or Libor plus 400 basis points, according to the filing, which reflects BREF's results for the second quarter ending June 30.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

"The company is currently assessing its options to satisfy the PIK interest payment obligation, including, but not limited to, negotiating a waiver of this requirement from the lender, selling off a portion of existing collateral or attempting to obtain borrowings from other sources," the company said in its quarterly report.

BREF was formed by affiliates of property, power and infrastructure asset manager Brookfield Asset Management Inc. in 2011 in order to take over ownership of the Hard Rock through a transaction in lieu of a foreclosure.

Read more on

Suggested Articles

Thayer Ventures led the investment, with Tiger Global, JLL Spark and Ashton Kutcher and Guy Oseary’s Sound Ventures among the others.

Formerly Driftwood Acquisitions & Development, Driftwood Capital has secured new capital allowing $3 billion in deployments over five years.

Easyhotel said that it would focus on France and Spain as part of its “ambitious strategy” for growth.