BETHESDA, MD—Pebblebrook Hotel has amended and restated its senior unsecured revolving credit facility increasing it to $600 million. The facility consists of a $300 million unsecured revolving credit facility, an extension of its existing $100 million unsecured term loan, and a 180-day option to draw down an additional $200 million in unsecured term loan proceeds.
The pricing on the amended credit facility was "significantly reduced", the REIT reported, and the revolving credit facility now matures in January 2019 with options to extend the maturity date to January 2020. The term loan now matures in January 2020.
"The amended facility also allows for further flexibility through additional access to capital for capital reinvestments such as renovations and repositionings and potential future acquisition opportunities as they may arise," says Raymond D. Martz, Pebblebrook's CFO.
The amended revolving credit facility's interest rate is based on a pricing grid with a range of 155 to 230 basis points over LIBOR, determined by the company's leverage ratio. At Pebblebrook's current leverage ratio, the interest rate on the revolving credit facility would be approximately 1.7%.
The credit facility also includes an accordion option that allows the company to request additional lender commitments up to a total of $1 billion. Pebblebrook has no outstanding balance on the $300 million revolving credit facility.
The REIT has also extended the maturity date of its $100 million unsecured term loan and received commitments for an additional $200 million in unsecured term loan proceeds, which can be drawn at any time over the next 180 days. The term loans mature in January 2020. The interest rate on the unsecured term loans is based on a pricing grid similar to the pricing grid on the amended revolving credit facility, with a range of 150 to 225 basis points over LIBOR, and is determined by the leverage ratio.
The $600 million unsecured credit facility is led by Bank of America Merrill Lynch.
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