Hersha Hospitality Trust Closes $200 Million Senior Unsecured Term Loan
August 03 2016 - 8:00AM
Business Wire
Hersha Hospitality Trust (NYSE:HT, “Hersha” or the “Company”),
owner of upscale hotels in urban gateway markets, announced the
Company closed on a new $200 million Senior Unsecured Term Loan
(the “Term Loan”). The new Term Loan, together with the Company’s
existing term loans and revolving line of credit, expands the
Company’s senior unsecured borrowing capacity from $800 million to
$1.0 billion before taking into account any draws or pay downs.
“We welcome our lending group’s continued support of Hersha’s
growth initiatives and strategic direction. The new Term Loan
sustains the significant efforts undertaken to optimize our balance
sheet and provides additional flexibility to execute our business
plan. Furthermore, this new Term Loan addresses our 2016 and 2017
debt maturities, resulting in estimated interest expense savings of
approximately $7.0 million on a full-year pro forma basis,” stated
Ashish R. Parikh, Chief Financial Officer.
The Term Loan’s interest rate is based on a pricing grid with a
range of 145 to 220 basis points over LIBOR, based on the Company’s
leverage ratio, and matures in 5 years. At closing, $50.0 million
was advanced to the Company as a single draw. The remaining $150.0
million will be available to the Company on a delayed draw basis up
to 9 months after the closing date in one or more advances. The
Company will utilize the Term Loan to refinance existing
indebtedness, as well as for the repayment of transaction expenses,
general corporate purposes, potential acquisitions and capital
expenditures.
The Term Loan was arranged by Citibank, N.A. and Wells Fargo
Bank, National Association, as Joint Lead Arrangers and Joint Book
Running Managers. Bank of America, N.A., Manufacturers and Traders
Trust Company, U.S. Bank National Association, Compass Bank and BMO
Harris Bank, N.A. acted as Co-Documentation Agents. Other
participating lenders included PNC Bank, National Association,
Fifth Third Bank, an Ohio Banking Corporation, TD Bank, N.A., Land
Bank of Taiwan, New York Branch and The Provident Bank.
Hersha Hospitality Trust (HT) is a self-advised real
estate investment trust in the hospitality sector, which owns and
operates high quality upscale hotels in urban gateway markets. The
Company's 56 hotels totaling 8,899 rooms are located in New York,
Boston, Philadelphia, Washington, DC, Miami and select markets on
the West Coast. The Company's shares are traded on The New York
Stock Exchange under the ticker “HT”.
Forward Looking Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, and, as such, may involve known and unknown risks,
uncertainties and other factors that may cause the actual results
or performance to differ from those reflected in the
forward-looking statement. These forward looking statements may
include statements related to, among other things, the Company’s
expectations regarding future interest rates, the Company’s ability
to manage revenues and expenses and future revenues generated by
the Company’s assets. For a description of these factors, please
review the information under the heading “Risk Factors” included in
Hersha Hospitality Trust’s filings with the U.S. Securities and
Exchange Commission Annual Report on Form 10-K for the year ended
December 31, 2015.
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version on businesswire.com: http://www.businesswire.com/news/home/20160803005392/en/
Hersha Hospitality TrustAshish Parikh, Chief Financial
OfficerPete Majeski, Manager of Investor Relations &
Finance215-238-1046
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