AUSTIN, Texas--(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.
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.