Condor Hospitality Trust, Inc., a hotel-focused real estate investment trust (REIT) headquartered and incorporated in the state of Maryland, announced that it has secured commitments from three lenders to increase its current $90 million senior secured revolving credit facility to $150 million. KeyBanc Capital Markets, BMO Capital Markets, and The Huntington National Bank are Joint Lead Arrangers for the revolving credit facility with KeyBank National Association serving as Administrative Agent and The Huntington National Bank and BMO Capital Markets serving as Co-Syndication Agents.
The commitments provide for up to a $150 million revolving credit facility which includes an accordion feature that would allow the Company to increase the size of the facility to up to $400 million. The facility matures in 2020 and has two one-year extension options following additional capital achievements. Borrowings will continue to bear interest at a rate determined by a leverage-based pricing grid.
“We are very pleased with the commitments provided by KeyBank, The Huntington National Bank and BMO Harris Bank, N.A. This is another example of Condor’s ability to execute on its stated strategic plan and we look forward to closing the increase to our credit facility in the second quarter. The increase to our credit facility will enable us to accelerate the closing of acquisitions, as illustrated by the three Home2 Suites we acquired late in the first quarter with financing under the facility,” said Jonathan J. Gantt, Condor’s Chief Financial Officer. “We continue to believe this new facility is a strong indicator of Condor’s credit-worthiness and our standing within the industry as a leading hotel REIT focused exclusively on premium-branded, select-service hotels in the top 100 MSAs,” Mr. Gantt continued.
The closing of the increase to the facility is expected to occur in the second quarter of 2017 upon successful completion of certain diligence items and closing conditions including executed loan modification documents, compliance with financial covenants, and other customary conditions.