WEST PALM BEACH, FL—-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 $250 million senior unsecured revolving credit facility.
The new unsecured revolving credit facility will mature in March 2023, which includes the option to extend the maturity by an additional year, and replaces Chatham’s previous $250 million senior unsecured credit facility that was scheduled to mature in 2020. Borrowing costs have been reduced by 0 to 15 basis points from comparable leverage-based pricing levels in Chatham’s previous credit facility.
At Chatham’s current leverage level, the borrowing cost under the new facility is LIBOR plus 1.65 percent.
Participating lenders for the unsecured line of credit include Barclays Bank PLC, Regions Capital Markets, Citibank N.A., US Bank National Association, Wells Fargo Bank National Association, Bank of America N.A., Citizens Bank N.A. and BMO Harris Bank N.A.
Barclays Bank PLC, Regions Capital Markets, US Bank National Association and Citibank N.A. acted as joint lead arrangers. Barclays Bank PLC acted as administrative agent, and Regions Capital Markets acted as syndication agent with US Bank National Association and Citibank N.A. acting as co-documentation agents.
“This refinancing further solidifies our balance sheet with only $13.8 million of debt maturing between now and 2023, reduces our annual interest costs and provides us with capacity and flexibility to pursue accretive growth opportunities,” said Dennis M. Craven, Chatham’s chief operating officer.