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. The net proceeds from the new Hudson and Delano South Beach mortgage loans were used to (1) repay $180 million of outstanding mortgage debt under the prior Hudson loan, (2) repay $37 million of indebtedness outstanding under Morgans revolving credit facility secured by Delano South Beach, (3) provide cash collateral for reimbursement obligations with respect to a $10 million letter of credit under the revolving credit facility, and (4) fund reserves required under the new Hudson and Delano South Beach mortgage loans, with the remainder available for general corporate purposes and working capital, which may include the repayment of other indebtedness. Jason T. Kalisman, Chairman of the Board and interim Chief Executive Officer of Morgans Hotel Group, said: “One of the top priorities of the Morgans Board, since being elected by Morgans’ shareholders in June 2013, has been to address the Company’s legacy balance sheet issues. We are pleased to have successfully completed the refinancing of the debt of Hudson and Delano South Beach on attractive terms that provide the Company with additional liquidity and extend key maturities on these properties while maintaining flexibility with these assets. This gives us the liquidity to address the Company’s current maturities and we believe this puts the Company in a much stronger financial position.