BHG approves debenture issue

Objective is to extend the Company's debt profile and reduce financial costs

Dec 10, 2012, 06:09 ET from BHG S.A. - Brazil Hospitality Group

SAO PAULO, Dec. 10, 2012 /PRNewswire/ -- On December 7, 2012, the Board of Directors of BHG S.A. - Brazil Hospitality Group (BM&FBovespa: BHGR3; OTC: BZHGY), approved the Company's issue of simple, non-convertible debentures, thereby raising up to seventy million reais (R$70,000,000.00), which will be used to extend its debt profile and strengthen its cash position. The Lead Manager of the operation is Banco Itau BBA S.A.

"This operation is in line with the Company's strategy of extending its debt profile, and reducing the financial cost associated with our debt," declared Pieter J. F. van Voorst Vader, CEO of BHG S.A. - Brazil Hospitality Group.

The offering will take place on December 17, 2012, when the Company will issue up to seven thousand (7,000) debentures with a nominal unit value of ten thousand reais (R$10,000.00). In terms of remuneration, the debentures will pay interest of one hundred percent (100%) of the one-day DI interbank rate, based on a year of 252 working days, calculated and disclosed on a daily basis by CETIP S.A. in the daily bulletin published on its website (, plus 1.8% per year of 252 business days.

The final maturity of the debentures is December 17, 2015, three years after the issue date.

Who we are:

BHG S.A. - Brazil Hospitality Group, the country's third largest hotel chain, is the first Brazilian company to operate in the real estate segment specializing in business tourism hotels, with owned and managed hotels in the 3-, 4- and 5-star categories. The Company currently has 48 hotels, with 8,539 rooms in operation, and 22 projects under development.

The exclusive contract with the Golden Tulip Hospitality Group in South America allows it to use the Royal Tulip (5-star), Golden Tulip (4-star) and Tulip Inn (3-star) brands.  BHG also has the Soft Inn brand, used for limited-service 2-star hotels, which offer an attractive cost-benefit ratio for business tourism.

BHG is a publicly-held company with shares traded on the Novo Mercado segment of the BM&FBovespa under the ticker BHGR3, and a Level I ADR program for trading its shares on the over-the-counter (OTC) market in New York, United States, under the ticker BZHGY. In September 2012, BHG announced the beginning of a FIP- Private Equity Fund, with the purpose of investing in the development of greenfield real estate projects in the domestic hotel sector, in the midscale category. The development of greenfield hotels will be one of the key growth drivers for BHG in the coming years.

Media Relations
BHG S.A. - Brazil Hospitality Group
Fernanda Pannunzio 
11.3577.2302 / 11.99668.7249

SOURCE BHG S.A. - Brazil Hospitality Group