May 31 (SeeNews) - Croatian tourism company Sunce Koncern [ZSE:SUKC] said on Friday that its joint venture company with global travel group TUI has signed an 11.5 million euro ($12.8 million) deal to refinance outstanding debt.
The JV, WOT Hotels Adriatic Asset Company, has signed the loan refinancing agreement with Split-based OTP Banka as a new lender on Thursday, Sunce said in a Zagreb bourse filing.
With the arrangement, the average interest rate on WOT Hotels Adriatic Asset Company's financial obligations has been reduced, whereas their duration has been increased, Sunce Koncern said without elaborating.
Furthermore, neither TUI nor any member of the Sunce Group is providing any form of financial guarantee under the new agreement with OTP Banka.
Sunce Concern established its joint venture with TUI in November 2017 by selling to TUI 50% of hotel operator Punta Zlatarac Tucepi.
With 11 beachfront hotels on the Adriatic coast, its own airport, a camping ground and other tourism assets located in four popular destinations in Croatia, the Sunce Koncern is one of the leading tourism operators in the country.
It has been operating in its current form since 2005 as all properties are mostly managed and operated in-house, under the brand BlueSun Hotels and Resorts.
($=0.896654 euro)