Chatham Lodging Trust Refinances Unsecured Credit Facility, Adds Term Loan
November 01 2022 - 9:00AM
Business Wire
Incremental Capacity Enhances Balance Sheet;
Maturity Extended to 2027
Chatham Lodging Trust (NYSE: CLDT), a hotel real estate
investment trust (REIT) focused on investing in upscale
extended-stay hotels and premium branded, select-service hotels,
today announced that it successfully refinanced its senior
unsecured revolving credit facility and issued a new unsecured term
loan.
The $215 million unsecured revolving credit facility and $90
million term loan replace Chatham’s previous $250 million senior
unsecured credit facility that was scheduled to mature in 2023.
Inclusive of extension options, the revolving credit facility and
term loan mature in October 2027. Chatham has up to six months to
borrow funds under the unsecured term loan and intends to fully
draw the $90 million within that time frame to repay maturing
secured debt.
The facilities will bear interest pursuant to a leveraged based
pricing grid over the applicable adjusted term SOFR ranging from
1.5 to 2.25 percent for the revolving credit facility and 1.45 to
2.2 percent for the term loan. Chatham can increase capacity in the
future by up to $145 million through an accordion feature. There
are currently no outstanding borrowings on the unsecured credit
facility or term loan.
“Our balance sheet is in fantastic shape, the strongest it has
been in the last decade, and our ability to raise incremental
proceeds during a tumultuous time in the credit markets is a
testament to our financial condition,” highlighted Dennis Craven,
Chatham’s chief operating officer. “We are in excellent shape after
reducing our net debt by approximately 40 percent since the start
of the pandemic, by far the most of any lodging REIT, through a
series of value enhancing transactions. We are in great position to
generate incremental cash flow and create more value for our
shareholders.”
Barclays Bank PLC, Capital One, National Association, Regions
Capital Markets and Wells Fargo Securities, LLC, acted as joint
lead arrangers and joint bookrunners for the revolving credit
facility with Bank of America N.A also participating as a
lender.
Regions Capital Markets and Capital One, National Association
acted as joint lead arrangers and joint bookrunners for the term
loan with Stifel Bank and Trust also participating as a lender.
“We greatly appreciate the collaborative efforts of our
participating lenders who worked with us to successfully execute
these two new facilities, further solidifying our financial
position for the next five years,” stated Jeremy Wegner, Chatham’s
chief financial officer. “We have very manageable maturities
aggregating $112 million in 2023. We have full availability under
both facilities and have encumbrances on only 15 of our 39 hotels,
which provides us flexibility to appropriately address our
maturities and capacity to acquire assets at the right time.”
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real
estate investment trust focused primarily on investing in upscale
extended-stay hotels and premium-branded, select-service hotels.
The company owns 39 hotels totaling 5,914 rooms/suites in 16 states
and the District of Columbia. Additional information about Chatham
may be found at chathamlodgingtrust.com.
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Chatham Lodging Trust, including those statements
regarding acquisitions, capital expenditures, future operating
results and the timing and composition of revenues, among others,
and statements containing words such as “expects,” “believes” or
“will,” which indicate that those statements are forward-looking.
Except for historical information, the matters discussed in this
press release are forward-looking statements that are subject to
certain risks and uncertainties that could cause the actual results
or performance to differ materially from those discussed in such
statements. Additional risks are discussed in the company’s filings
with the Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221101005588/en/
Chatham Lodging Trust Dennis Craven, 561-227-1386 dcraven@cl-trust.com
Chatham Lodging (NYSE:CLDT)
Historical Stock Chart
From Sep 2024 to Oct 2024
Chatham Lodging (NYSE:CLDT)
Historical Stock Chart
From Oct 2023 to Oct 2024