Chesapeake Lodging Trust Obtains $225.0 Million Unsecured Term Loan
April 25 2017 - 4:15PM
Business Wire
Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), announced today that it has closed on a
five-year, $225.0 million unsecured term loan. The term loan was
led by Wells Fargo Bank, N.A., as administrative agent, JPMorgan
Chase Bank, N.A., as syndication agent, and PNC Bank, N.A., as
documentation agent.
The term loan provides for the possibility of future increases,
up to a maximum amount borrowed of $375.0 million, in accordance
with the terms of the term loan agreement. The loan bears interest
equal to LIBOR, plus 1.45% - 2.20% (the spread over LIBOR based on
the Trust’s consolidated leverage ratio). Contemporaneous with the
closing of the unsecured term loan, the Trust entered into an
interest rate swap to fix LIBOR at 1.86% for the five-year term. As
of April 25, 2017, the effective interest rate on the unsecured
term loan was 3.31%. Proceeds from the term loan were used to repay
outstanding borrowings under the revolving credit facility. The
term loan agreement contains the same financial covenants as those
contained in the Trust's revolving credit facility.
“We are pleased to take advantage of the historically low
interest rate environment and extend the weighted-average maturity
of our debt to 5.9 years,” said Douglas W. Vicari, Chesapeake
Lodging Trust’s Executive Vice President and Chief Financial
Officer. “Furthermore, we now have full borrowing availability of
$300.0 million under our revolving credit facility which provides
us flexibility and capacity to take advantage of shareholder value
creation opportunities as they arise.”
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
22 hotels with an aggregate of 6,694 rooms in nine states and the
District of Columbia. Additional information can be found on the
Trust’s website at www.chesapeakelodgingtrust.com.
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Chesapeake Lodging TrustDouglas W. Vicari (571) 349-9452
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