RLJ Lodging Secures $700M Credit Facility

BETHESDA, MD-The unsecured credit facility is expandable to $1.2 billion.

By Erika Morphy | Updated on November 27, 2012

BETHESDA, MD-RLJ Lodging Trust, a local REIT, has completed a $700-million unsecured credit facility that is expandable to $1.2 billion. The facility consists of a five-year and a seven-year unsecured term loan for an aggregate amount of $400 million and a $300 million unsecured revolving line of credit.

The new facility replaces RLJ’s existing revolver at a lower interest rate, securing for the REIT savings of approximately $8 million to $10 million next year. The interest rates are based on a pricing grid tied to the company’s leverage ratio, resulting in blended term loan pricing that was more than 300 basis points lower than the 5.8% weighted average interest rate of the loans that were paid off.

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