LaSalle Hotel Properties Refinances $750 Million Revolver and $300 Million Term Loan

Published on : Wednesday, January 11, 2017

LaSalle Hotel PropertiesLaSalle Hotel Properties today announced that it has refinanced $1.05 billion of debt, reducing the interest cost on its $750.0 million revolver and $300.0 million five-year term loan and extending their maturities to January 2022 (including the exercise of extension options pursuant to certain conditions). The revolver and term loan include accordion features which, subject to certain conditions, entitle the Company to request additional lender commitments, allowing for total commitments up to $1.25 billion for the revolver and $500.0 million for the term loan.

 

The interest rate for the new revolver is based on a pricing grid with a range of 150 to 225 basis points over LIBOR, based on the Company’s leverage ratio and is currently LIBOR plus 150 basis points, or 2.26 percent. Pricing for the term loan is LIBOR plus 145 to 220 basis points, based on the Company’s leverage ratio. The term loan remains swapped, fixing LIBOR until August 2017, resulting in a current interest rate of 2.23 percent.

 

The revolver and the term loan were arranged by Citigroup Global Markets Inc.; BMO Capital Markets; Merrill Lynch, Pierce, Fenner & Smith Incorporated; U.S. Bank National Association; PNC Capital Markets LLC; TD Bank, N.A.; and Sumitomo Mitsui Banking Corporation as joint lead arrangers. Citigroup Global Markets Inc.; BMO Capital Markets; and Merrill Lynch, Pierce, Fenner & Smith Incorporated also acted as joint book running managers. Additionally, LaSalle Hotel Lessee, Inc., the Company’s taxable REIT subsidiary refinanced its $25.0 million revolver with U.S. Bank National Association, with no change in capacity, on similar terms as the revolver and term loan.

 

“We greatly appreciate the continued support of our bank group, which enabled us to enter into this new credit facility and strengthen our top tier balance sheet,” said Kenneth G. Fuller, EVP and Chief Financial Officer of LaSalle Hotel Properties. “Our only remaining debt maturity before 2021 is $42.5 million of bonds secured by Hyatt Regency Boston Harbor, which mature in 2018.”

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

arrow2Follow TTW
 
facebook-logo  twitter-logo  LinkedIn_logo  stumbleupon-logo   rss_logo 
ttw_blogger_logo  ttw_blogger_logo  ttw_blogger_logo

ADVERTISEMENT

  • 01 AIME 2018 BB
  • 02 WTM 2017
  • 03 EMITT 2018
  • 04 AIME-2018 small
  • 05 iitmindia 2017
  • 06 imtm 2018
  • 06 TTF-Surat 2017
  • 07 balttour 2018
  • 30 PATA

TRAVEL INDUSTRY EVENTS

Get our toolbar!
Review www.travelandtourworld.com on alexa.com