Monday March 10th, 2014 - 9:42AM
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.