Summit Hotel Properties has refinanced its $600 million senior unsecured credit facility.
The Austin, Texas-based hotel real estate investment trust's refinancing involved a $400 million senior unsecured revolving credit facility and a $200 million senior unsecured term loan, according to a news release.
“We greatly appreciate the ongoing support of our lending partners and are extremely pleased with the execution of this credit facility refinancing, said Trey Conkling, executive vice president and chief financial officer, in the news release. “The credit facility further enhances our well-positioned balance sheet by extending maturity dates, maintaining pricing, and preserving overall flexibility to execute on our strategic initiatives.”
The company secured a maturity date of June 2028 for both the revolving credit facility and the term loan along with extension options.
As it was under the prior credit facility, the pricing grid has a range of 140 to 240 basis points for the revolving facility and 135 to 235 basis points for the term loan, each over the applicable term SOFR rate.
With the refinancing, Summit’s average length to maturity increased to more than three years, with extension options. No more than 2% of the REIT’s pro rata outstanding debt will mature in any single year. It has nearly $450 million in pro rate total liquidity and continues to maintain about 80% pro rata fixed rate debt and preferred equity capital after giving effect to interest rate derivative agreements.
As of June 22, Summit’s portfolio includes 100 hotels, 57 of which are wholly owned, with a total of 14,987 guestrooms across 24 states.