AUSTIN--Summit Hotel Properties Inc. has closed on a new $125-million seven-year unsecured term loan facility.

“We are pleased to announce the closing of this $125 million long-term debt facility,” said Daniel P. Hansen, president and CEO, in a release. “The support of our credit partners is a validation of the quality of our portfolio and execution of our strategy.”

Proceeds from the term loan have been used to repay outstanding borrowings under the company's senior unsecured revolving credit facility. At the company's election, borrowings under the term loan bear interest at a floating rate plus a spread over either the Eurodollar rate or the base rate. The spread depends upon the company's leverage ratio and ranges from 1.80 to 2.60 percent for Eurodollar Rate based borrowings and from 0.80 to 1.60 percent for base rate based borrowings. The term loan has an accordion option that provides the company with the ability to increase the term loan capacity to $200 million, subject to customary conditions.

Successful execution of the term loan results in the company having a debt portfolio with a weighted-average term-to-maturity of greater than five years, and sufficient liquidity to address debt maturities through 2017, after the consideration of extension options.

The Term Loan was arranged by KeyBanc Capital Markets Inc., Regions Capital Markets and Raymond James Bank NA. KeyBank National Association will serve as administrative agent with Regions Bank and Raymond James Bank NA as co-syndication agents. Other participants include Branch Banking and Trust Co. and U.S. Bank National Association.

Last fall, the company acquired its first hotel in Austin, a Hampton Inn & Suites at 200 San Jacinto Blvd.