Pebblebrook Hotel Trust has refinanced $2 billion of credit facilities and term loans, extending its debt maturities and adding flexibility and capacity to its balance sheet.
The hotel real estate investment trust’s refinancing has resulted in a $650 million senior unsecured revolving credit facilities and three loan terms totaling $1.4 billion, according to a news release.
Pebblebrook has been an active buyer and seller through 2022. It acquired the 257-room Gurney’s Newport Resort & Marina in Newport, Rhode Island, for $174 million in late June and the 119-room Inn on Fifth in Naples, Florida, for $156 million in May.
During the third quarter, it sold the Kimpton Hotel Vintage Portland in Oregon for $32.9 million, the 236-room Hotel Spero in San Francisco for $71 million, and the 306-room Sofitel Philadelphia at Rittenhouse Square for $80 million.
The credit facility’s maturity has been extended to October 2027 with two optional six-month extensions. The interest rate is based on a pricing grid of 145 to 250 basis points over the applicable adjusted term SOFR.
Among the term loans, the first $460 million loan matures in October 2024. The second $460 million loan matures the following October. The third $460 million loan matures October 2027. For all three term loans, the interest rate is based on a pricing grid of 140 to 245 basis points over the applicable adjusted term SOFR.
Taking into account certain interest rate swap agreements, as of Sept. 30, about 79% of the company’s total outstanding debt and convertible notes are fixed at an average interest rate of about 2.7%. The remaining 21% of outstanding debt and convertible notes are floating at an average interest rate of about 4.9%.