AUSTIN,
Texas, June 22, 2023 /PRNewswire/ -- Summit
Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced
that it has successfully completed the refinancing of its
$600 million senior unsecured credit
facility (the "Credit Facility"), which is comprised of a
$400 million senior unsecured
revolving credit facility (the "Revolver") and $200 million senior unsecured term loan (the
"Term Loan").
"We greatly appreciate the ongoing support of our lending
partners and are extremely pleased with the execution of this
credit facility refinancing. The credit facility further
enhances our well-positioned balance sheet by extending maturity
dates, maintaining pricing, and preserving overall flexibility to
execute on our strategic initiatives," commented Trey Conkling, the Company's Executive Vice
President and Chief Financial Officer.
The amended and restated credit agreement provides for a
maturity date of June 2028 for both
the Revolver and Term Loan, including extension options. The
pricing grid from the prior credit facility has been maintained at
a range of 140 to 240 basis points for the Revolver and 135 to 235
basis points for the Term Loan, each over the applicable adjusted
Term SOFR rate. Other terms of the agreement are similar to
the Company's previous credit facility agreement.
As a result of this refinancing, the Company's average length to
maturity has been increased to over three years, including
extension options, with no more than 25% of the Company's pro rata
outstanding debt maturing in any single year. Additionally,
the Company currently has nearly $450
million of pro rata total liquidity and continues to
maintain approximately 80% pro rata fixed interest rate debt and
preferred equity capital after giving effect to interest rate
derivative agreements.
Serving as Joint Bookrunners and Joint Lead Arrangers on the
transaction were BofA Securities, Inc., Wells Fargo Securities,
LLC, JPMorgan Chase Bank, N.A., Regions Capital Markets, and U.S.
Bank National Association. Additional Joint Lead Arrangers
were Capital One, National Association, Bank of Nova Scotia, and Truist Securities, Inc.
Royal Bank of Canada and
Raymond James Bank were participants
in the Credit Facility. Bank of America, N.A. serves as the
Administrative Agent. Wells Fargo Bank, N.A., Regions Bank,
JPMorgan Chase Bank, N.A., and U.S. Bank National Association serve
as Co-Syndication Agents.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate
investment trust focused on owning premium-branded lodging
properties with efficient operating models primarily in the Upscale
segment of the lodging industry. As of June
22, 2023, the Company's portfolio consisted of 100 assets,
57 of which are wholly owned, with a total of 14,987 guestrooms
located in 24 states.
For additional information, please visit the Company's website,
www.shpreit.com, and follow the Company on Twitter at
@SummitHotel_INN.
Forward Looking Statements
This press release contains statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Act of 1934,
as amended, pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are generally identifiable by use of forward-looking
terminology such as "may," "will," "should," "potential," "intend,"
"expect," "seek," "anticipate," "estimate," "approximately,"
"believe," "could," "project," "predict," "forecast," "continue,"
"plan," "likely," "would" or other similar words or
expressions. These forward-looking statements relate to the
payment of dividends. Forward-looking statements are based on
certain assumptions and can include future expectations, future
plans and strategies, financial and operating projections or other
forward-looking information. These forward-looking statements are
subject to various risks and uncertainties, not all of which are
known to the Company and many of which are beyond the Company's
control, which could cause actual results to differ materially from
such statements. These risks and uncertainties include, but are not
limited to, the state of the U.S. economy, supply and demand in the
hotel industry and other factors as are described in greater detail
in the Company's filings with the Securities and Exchange
Commission, including, without limitation, the Company's Annual
Report on Form 10-K for the year ended December 31, 2022. Unless legally required, the
Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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SOURCE Summit Hotel Properties, Inc.