BETHESDA, MD-RLJ Lodging Trust, a local REIT,has completed a $700-million unsecured creditfacility that is expandable to $1.2 billion. Thefacility consists of a five-year and a seven-year unsecured termloan for an aggregate amount of $400 million and a $300 millionunsecured revolving line of credit.
The new facility replaces RLJ's existing revolver at a lowerinterest rate, securing for the REIT savings of approximately $8million to $10 million next year. The interest rates are based on apricing grid tied to the company’s leverage ratio, resulting inblended term loan pricing that was more than 300 basispoints lower than the 5.8% weighted average interest rateof the loans that were paid off.
The REIT is using the proceeds to pay down $70 million of theoutstanding $85 million on its facility and retire four securedmortgage loans, which total approximately $330 million. These loanswere secured by the DoubleTree by Hilton Metropolitan NewYork City.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
