LaSalle Hotel Properties Refinances $750 Million Revolver and $300 Million Term Loan
January 10 2017 - 4:15PM
Business Wire
LaSalle Hotel Properties (NYSE: LHO) 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.”
About LaSalle Hotel Properties
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 46 properties, which are
upscale, full-service hotels, totaling approximately 11,450 guest
rooms in 13 markets in nine states and the District of Columbia.
The Company focuses on owning, redeveloping and repositioning
upscale, full-service hotels located in urban, resort and
convention markets. LaSalle Hotel Properties seeks to grow through
strategic relationships with premier lodging groups, including
Hilton Hotels Corporation, Marriott International, Outrigger
Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, Two Roads Hospitality, Davidson
Hotel Company, Kimpton Hotel & Restaurant Group, LLC, Accor,
HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel
Group, Highgate Hotels and Access Hotels & Resorts.
For additional information or to receive press releases via
e-mail, please visit our website at www.lasallehotels.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170110006278/en/
LaSalle Hotel PropertiesKenneth G. Fuller or Max D. Leinweber,
301-941-1500
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