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Summit Hotel Properties Completes $300MM Facility with Deutsche, Others

October 15, 2013, 07:54 AM
Filed Under: Real Estate

Summit Hotel Properties, Inc. announced that it has closed on a new $300 million senior unsecured credit facility.

On Oct. 10, the company completed a new $300 million senior unsecured credit facility to replace its $150 million senior secured revolving credit facility. The unsecured credit facility is comprised of a $225 million revolving credit facility and a $75 million term loan. In addition to moving to an unsecured structure and increasing the maximum size of the facility, the company was able to lower the interest rate spread on outstanding borowings and extend the term of the maturity by two and a half years to October 10, 2017. The credit facility has an accordion feature which will allow the Company to increase the capacity by $100 million in either additional revolver capacity or an additional term loan. Deutsche Bank AG New York Branch is the administrative agent and Deutsche Bank Securities Inc. is the lead manager. The syndication of lenders includes Deutsche Bank AG; Bank of America, N.A.; Royal Bank of Canada; Key Bank National Association; Regions Bank; Fifth Third Bank; Raymond James Bank, N.A.; and U.S. Bank National Association.

“We are very satisfied with the completion of our unsecured credit facility,” said company executive vice president and chief financial officer Stuart Becker. “We continue to see opportunities to acquire additional strategic hotels. Thus, expanding our financing capacity with a more flexible unsecured credit facility, while reducing our financing costs, is very positive for our company.”

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused primarily on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments of the lodging industry. As of October 14, 2013, the Company’s portfolio consisted of 94 hotels with a total of 11,136 guestrooms located in 24 states.

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