Summit Hotel Properties Closes $125 Million Unsecured Seven-Year Term Loan Facility
April 13 2015 - 1:33PM
Business Wire
Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today
announced that it successfully closed on a new $125.0 million
seven-year unsecured term loan facility (the “Term Loan”).
“We are pleased to announce the closing of this $125 million
long-term debt facility,” said Daniel P. Hansen, President and
Chief Executive Officer. “The support of our credit partners is a
validation of the quality of our portfolio and execution of our
strategy.”
Proceeds from the Term Loan have been used to repay outstanding
borrowings under the Company’s senior unsecured revolving credit
facility. At the Company's election, borrowings under the Term Loan
bear interest at a floating rate plus a spread over either the
Eurodollar Rate or the Base Rate. The spread depends upon the
Company's leverage ratio and ranges from 1.80 to 2.60 percent for
Eurodollar Rate based borrowings and from 0.80 to 1.60 percent for
Base Rate based borrowings. The Term Loan has an accordion option
which provides the Company with the ability to increase the Term
Loan capacity to $200.0 million, subject to customary
conditions.
Successful execution of the Term Loan results in the Company
having a debt portfolio with a weighted-average term-to-maturity of
greater than five years, and sufficient liquidity to address debt
maturities through 2017, after the consideration of extension
options.
The Term Loan was arranged by KeyBanc Capital Markets, Inc.,
Regions Capital Markets and Raymond James Bank, N.A. KeyBank
National Association will serve as Administrative Agent with
Regions Bank and Raymond James Bank, N.A. as Co-Syndication Agents.
Other participants include Branch Banking and Trust Company and
U.S. Bank National Association.
About Summit Hotel
Properties
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 March 31, 2015,
the Company’s portfolio consisted of 90 hotels with a total of
11,468 guestrooms located in 21 states, which includes five
additional guestrooms added during the first quarter of 2015
through strategic renovation.
For additional information, please visit the Company’s website,
www.shpreit.com.
Forward-Looking
Statements
This press release contains statements that are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, pursuant to the safe harbor provisions of the
Private Securities Reform Act of 1995. Forward-looking statements
are generally identifiable by use of forward-looking terminology
such as “may,” “will,” “should,” “potential,” “intend,” “expect,”
“seek,” “anticipate,” “estimate,” “approximately,” “believe,”
“could,” “project,” “predict,” “forecast,” “continue,” “plan,”
“likely,” “would” or other similar words or expressions.
Forward-looking statements are based on certain assumptions and can
include future expectations, future plans and strategies, financial
and operating projections or other forward-looking information.
Examples of forward-looking statements include the following: the
Company’s ability to realize embedded growth from the deployment of
renovation capital; projections of the Company’s revenues and
expenses, capital expenditures or other financial items;
descriptions of the Company’s plans or objectives for future
operations, acquisitions, dispositions, financings or services;
forecasts of the Company’s future financial performance and
potential increases in average daily rate, occupancy, RevPAR, room
supply and demand, FFO and AFFO; the Company’s outlook with respect
to pro forma RevPAR, pro forma RevPAR growth, RevPAR, RevPAR
growth, AFFO, AFFO per diluted unit and renovation capital
deployed; and descriptions of assumptions underlying or relating to
any of the foregoing expectations regarding the timing of their
occurrence. These forward-looking statements are subject to various
risks and uncertainties, not all of which are known to the Company
and many of which are beyond the Company’s control, which could
cause actual results to differ materially from such statements.
These risks and uncertainties include, but are not limited to, the
state of the U.S. economy, supply and demand in the hotel industry
and other factors as are described in greater detail in the
Company’s filings with the Securities and Exchange Commission
(“SEC”). Unless legally required, the Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
For information about the Company’s business and financial
results, please refer to the “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and “Risk
Factors” sections of the Company’s Annual Report on Form 10-K for
the year ended December 31, 2014 filed with the SEC, and its
quarterly and other periodic filings with the SEC. The Company
undertakes no duty to update the statements in this release to
conform the statements to actual results or changes in the
Company’s expectations.
Summit Hotel Properties, Inc.Elisabeth Eisleben,
512-538-2306Director of Investor Relationseeisleben@shpreit.com
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