DALLAS, Aug. 1, 2023
/PRNewswire/ -- Braemar Hotels & Resorts Inc. (NYSE: BHR)
("Braemar" or the "Company") today announced that it has entered
into a new $200 million corporate
financing. The financing has an initial three-year term and
includes a senior secured term loan facility in an initial
principal amount of $150 million and
a senior secured revolving credit facility in an initial principal
amount of $50 million. The financing
includes the opportunity to expand the borrowing capacity up to an
aggregate size of $400 million, and
there is a one-year extension option subject to the satisfaction of
certain conditions. The financing is fully prepayable without
penalty, and the interest rate is based upon a pricing grid related
to the Company's Net Debt to EBITDA that provides for a range of
SOFR + 2.35% to 3.10%. The Company anticipates that the initial
interest rate will be SOFR + 2.85%. Bank of America, N.A. acted as
administrative agent and lead arranger on the transaction.
Syndicate bank participants include TBK Bank and MidFirst Bank.
The use of proceeds for the financing was to repay the mortgage
debt associated with the Ritz-Carlton Sarasota, the Bardessono
Hotel and Spa, and the Hotel Yountville, which will serve as the
borrowing base for the financing.
"We are pleased to complete this new corporate level financing
which strengthens our balance sheet and provides enhanced
optionality and financial flexibility," said Richard J. Stockton, Braemar's President and
Chief Executive Officer. "We appreciate the strong support we
received from our lending partners, underscoring our high-quality
portfolio of resort and urban assets and Braemar's future prospects
for continued growth."
Braemar expects to use the credit facility for general corporate
purposes, which may include working capital, acquisitions, and
refinancing existing debt.
Braemar Hotels & Resorts is a real estate investment trust
(REIT) focused on investing in luxury hotels and resorts.
Forward-Looking Statements
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. These
forward-looking statements are subject to risks and uncertainties.
When we use the words "will likely result," "may," "anticipate,"
"estimate," "should," "expect," "believe," "intend," or similar
expressions, we intend to identify forward-looking statements. Such
statements are subject to numerous assumptions and uncertainties,
many of which are outside Braemar's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: our ability to repay, refinance or restructure our debt
and the debt of certain of our subsidiaries; anticipated or
expected purchases or sales of assets; our projected operating
results; completion of any pending transactions; risks associated
with our ability to effectuate our dividend policy, including
factors such as operating results and the economic outlook
influencing our board's decision whether to pay further dividends
at levels previously disclosed or to use available cash to pay
dividends; our understanding of our competition; market trends;
projected capital expenditures; the impact of technology on our
operations and business; general volatility of the capital markets
and the market price of our common stock and preferred stock;
availability, terms and deployment of capital; availability of
qualified personnel; changes in our industry and the markets in
which we operate, interest rates or the general economy; and the
degree and nature of our competition. These and other risk factors
are more fully discussed in Braemar's filings with the Securities
and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider this risk when you make an investment decision concerning
our securities. Investors should not place undue reliance on these
forward-looking statements. The Company can give no assurance that
these forward-looking statements will be attained or that any
deviation will not occur. We are not obligated to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or circumstances, changes in
expectations, or otherwise, except to the extent required by
law.
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SOURCE Braemar Hotels & Resorts Inc.