Chesapeake Lodging Trust Completes $300 Million Unsecured Revolving Credit Facility
March 04 2015 - 2:11PM
Business Wire
Chesapeake Lodging Trust (NYSE:CHSP) (the “Trust”) announced
today that it has amended its credit agreement by (1) converting it
from a secured to an unsecured credit facility, (2) increasing the
maximum size of the facility, (3) lowering the interest rate spread
over LIBOR charged on outstanding borrowings, and (4) extending the
initial term. The facility is led by Wells Fargo Bank, N.A., as
administrative agent, JPMorgan Chase Bank, N.A., as syndication
agent, and Deutsche Bank Securities Inc., as documentation
agent.
The amended credit agreement increases the maximum amount the
Trust may borrow under the unsecured revolving credit facility from
$250.0 million to $300.0 million, and also provides for the
possibility of further future increases, up to a maximum of $450.0
million, in accordance with the terms of the amended credit
agreement. The actual amount that the Trust can borrow under the
unsecured revolving credit facility continues to be based on the
value of the Trust's hotels included in the borrowing base, as
defined in the amended credit agreement. The interest rate spread
over LIBOR for borrowings under the unsecured revolving credit
facility was reduced to LIBOR, plus 1.55% - 2.30% (the spread over
LIBOR based on the Trust’s consolidated leverage ratio). The
initial term of the amended credit agreement will now expire in
March 2019, but the term may be extended for one year subject to
satisfaction of certain customary conditions. The amended credit
agreement has more favorable financial covenants, including the
leverage ratio and minimum tangible net worth requirement, as
compared to those in effect prior to the amendment, and has
additional financial covenants typically found in similar unsecured
revolving credit facilities, including a consolidated secured debt
ratio, an unsecured leverage ratio and an unsecured debt service
coverage ratio.
ABOUT CHESAPEAKE LODGING TRUST
Chesapeake Lodging Trust is a self-advised lodging real estate
investment trust (REIT) focused on investments primarily in
upper-upscale hotels in major business and convention markets and,
on a selective basis, premium select-service hotels in urban
settings or unique locations in the United States. The Trust owns
20 hotels with an aggregate of 6,116 rooms in eight states and the
District of Columbia. Additional information can be found on the
Trust’s website at www.chesapeakelodgingtrust.com.
Chesapeake Lodging TrustDouglas W. Vicari, 410-972-4142
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From Apr 2024 to May 2024
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From May 2023 to May 2024