Morgans Hotel Group Refinances Debt Secured by Hudson and Delano South Beach

NEW YORK--(BUSINESS WIRE)--Morgans Hotel Group Co. (NASDAQ:MHGC) (“Morgans”), the New York-based hospitality management company, announced today that it has successfully refinanced its $180 million mortgage loan secured by Hudson in New York and its $100 million revolving credit facility secured by Delano South Beach. The mortgage loan and credit facility were refinanced with nonrecourse mortgage and mezzanine loans with an aggregate principal amount of $450 million, which was fully funded at closing. The new loan is secured by mortgages encumbering Hudson and Delano South Beach and pledges of equity interests in certain subsidiaries of Morgans and matures on February 6, 2016, with three, one-year extension options subject to certain conditions. The loan was provided by Citigroup Global Markets Realty Corp. and Bank of America, N.A.