X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BETHESDA, MD-Hospitality establishment REIT LaSalle Hotel Properties has orchestrated a new financial deal just in time for year’s end, and it leaves the company with its ledger clear of maturing debt for the next three years. LaSalle has managed to snag a new $215-million senior unsecured bank facility that provides more appealing terms than its former facility, which was scheduled to mature Dec. 31. Earlier this month, LaSalle cut the size of the pre-existing credit facility by nearly $50 million with the sale of three million common shares of beneficial interest.

Financial institutions Bank of Montreal and Fleet National Bank led the deal, which also included the involvement of LaSalle Bank, Raymond James, Scotia Capital, US Bank, Wachovia and Wells Fargo. “Our bank group continues to show strong support and confidence in our company,” LaSalle CFO Hans Weger explains. “Furthermore, our conservatively managed balance sheet, combined with the enhanced flexibility and capacity provided by the new facility, will position us to capitalize on opportunities in the market.”

While the REIT did not immediately respond to GlobeSt.com inquires regarding specifics of the market opportunities it plans to take advantage of with the funds, its behavior in the third quarter might give a hint of what future investments could be in store. LaSalle’s previous facility allowed for maximum borrowing of as much as $210 million, and the company relied on $24 million of those funds in September to acquire 100% interest in the 139-room Washington, DC boutique property, Hotel George. The resulting funds from the new arrangement will be available Dec. 15.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.