Selina Beit Oren, Israel
Israeli hospitality company Selina, one of the world’s largest hospitality brands built to address the needs of millennial and Gen Z travelers and which is in danger of shuttering, may have been saved by a new investment of $68 million from Osprey Investments. An initial tranche of $20 million is expected to be funded in December 2023, subject to definitive agreements being settled. The flailing NASDAQ traded company has lost 99% of its value since once holding a market cap of $1.2 billion.
The new deal includes an agreement in principle on terms for up to $40 million of optional equity financing, subject to a definitive agreement. There is also an agreement in principle on terms for restructuring of Selina’s $147.5 million 6% convertible senior notes due 2026 to reduce indebtedness, extend maturity and PIK interest.
As part of the deal, Osprey would have the right to appoint a total of four directors to the Board of Directors of the Company and designate a certain number of members of the Board committees, subject to the Company’s continued compliance with the Nasdaq governance requirements so long as the Company remains a listed company, while two members of the Board could remain as executive directors. The participating noteholders would have the right to appoint one director to the Company’s Board of Directors, subject to the approval of Osprey, not to be unreasonably withheld.
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Founded in 2014 by Daniel Rudasevski and Rafael Museri, Selina says it was built to address the needs of Millennial and Gen Z travelers, blending beautifully-designed accommodation with coworking, recreation, wellness, and local experiences. Custom-built for today’s nomadic traveler, Selina provides guests with a global infrastructure to seamlessly travel and work abroad. But its business model seems to not be practical.
In August, Jewish Business News reported on how the firm’s shares had plummeted by 96%. At the end of June Selina announced that it was closing offices and laying off 350 people.
