LaSalle Hotel Properties Refinances $750 Million Revolver and $300 Million Term Loan
January 13 2014 - 9:00AM
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 2019. 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 $1.05 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 170 to 245 basis points over LIBOR, based on
the Company’s leverage ratio and is currently LIBOR plus 170 basis
points, or 1.86 percent. Pricing for the term loan is LIBOR plus
160 to 235 basis points, based on the Company’s leverage ratio. The
term loan remains swapped, fixing LIBOR through August 2017,
resulting in a current interest rate of 2.37 percent.
The revolver was arranged by Citigroup Global Markets Inc., BMO
Capital Markets and RBS Securities Inc. as Joint Lead Arrangers and
Book Running Managers. The term loan was arranged by Citigroup
Global Markets Inc.
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 appreciate the continued support of our bank group, which
enabled us to enter into this new credit facility,” said Bruce
Riggins, Chief Financial Officer of LaSalle Hotel Properties. “We
were able to extend the maturity to 2019 and reduce our interest
costs, resulting in current weighted-average interest cost of 3.8
percent for all Company debt. We have less than $9.0 million of
debt maturing in 2014 and our balance sheet remains in excellent
shape.”
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 45 hotels and a mezzanine loan
secured by two hotels in Santa Monica, CA. The properties are
upscale, full-service hotels, totaling approximately 11,400 guest
rooms in 14 markets in 10 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 companies, including Westin
Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging
Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, White Lodging Services
Corporation, Commune Hotels and Resorts, Davidson Hotel Company,
Denihan Hospitality Group, the Kimpton Hotel & Restaurant
Group, LLC, Accor, Destination Hotels & Resorts, 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
LaSalle Hotel PropertiesBruce A. Riggins or Kenneth G. Fuller,
301-941-1500
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