Hersha Hospitality Trust Closes $500M Senior Unsecured Credit Facility
Monday March 10th, 2014 - 9:42AM S
| | | | | | | | | | |
These are shortcuts to your favorite social networking and bookmark sites. Add this story to your Facebook page, del.icio.us, DiggIt, and many others!
PHILADELPHIA—Hersha Hospitality Trust has closed on a new $500-million senior unsecured credit facility that is expandable to $850 million. The credit facility consists of a $250-million senior unsecured revolving line of credit and a $250-million senior unsecured term loan. This new facility amends and restates the company’s existing $400-million senior secured revolving credit facility.
“We appreciate the financial community’s extraordinary support in the refinancing and enhancing of our facility. The new facility affords the company greater financial flexibility, extends our debt maturities and reduces our weighted average cost of debt,” stated Ashish R. Parikh, CFO of Hersha Hospitality Trust. “We were particularly encouraged by the oversubscription of the facility by the bank group. The level of interest demonstrated confidence in the company’s strategic direction, conservative balance sheet and the inherent value of our high quality, urban transient hotel portfolio.”
The interest rate for the Revolving Credit Facility is based on a pricing grid with a range of 170 to 245 basis points over LIBOR, based on the Hersha Hospitality Trust’s leverage ratio. Pricing for the term loan is LIBOR plus 160 to 235 basis points also based on the company’s leverage ratio. The company will use the new facility for general corporate purposes.
Tags: Hersha Hospitality Trust • Hospitality • Sources of Funding •
The theme of this year’s ALIS conference was “Don’t Worry, Be Happy.” But, lets face it, there are always going to be some people who aren’t happy unless they are worried about something—whether it’s the Fed potentially raising interest rates or that the price of oil is now too low, threatening to cripple the economies of some foreign nations.