Pebblebrook Hotel Trust Originates $150M in Term Loan Proceeds

BETHESDA, MD—Pebblebrook Hotel Trust has exercised the accordion options on two of its existing unsecured term loans to borrow an additional $150 million. The company’s existing $125 million term loan maturing in January 2021 and the company’s existing $100 million term loan maturing in April 2022 were increased by $75 million each.

“We are pleased with the strong interest and support shown by our bank group with this $150 million of term loan increases,” commented Raymond D. Martz, CFO for Pebblebrook Hotel Trust. “We expect to use proceeds from this financing to reduce the balance on our existing $450 million unsecured credit facility, which will have an outstanding balance after paydown of $45 million. Furthermore, in December we repaid the $34.1 million mortgage secured by the DoubleTree by Hilton Hotel Bethesda – Washington DC and our $28.9 million mortgage secured by the Skamania Lodge. We currently have $86.2 million of debt maturities remaining in 2016, which we expect to pay down utilizing our existing credit facility, additional unsecured term loans or notes or through future property dispositions.”

The interest rate on the additional $75 million drawn on the term loan that matures in January 2021 has been fixed and is based on a pricing grid with a range of 145 to 220 basis points over LIBOR, determined by the company’s leverage ratio. At the company’s current leverage ratio, the interest rate will be fixed at 3.08%. This term loan is jointly led by PNC Capital Markets LLC and Regions Capital Markets, who serve as joint lead arrangers and joint book runners. PNC Bank, National Association serves as the administrative agent, Regions Bank serves as the syndication agent, and U.S. Bank National Association and Sumitomo Mitsui Banking Corporation serve as the documentation agents. Bank of America, N.A., Wells Fargo Bank, National Association, Capital One, N.A. and TD Bank also participated in this term loan.

The interest rate on the additional $75 million drawn on the term loan that matures in April 2022 is currently floating and is based on a pricing grid with a range of 170 to 255 basis points over LIBOR, determined by the company’s leverage ratio. At the company’s current leverage ratio, the interest rate is currently 2.23%. This term loan is jointly led by U.S. Bank and Capital One, N.A. U.S. Bank serves as the administrative agent, Capital One, N.A. serves as the syndication agent, and Raymond James Bank, N.A. serves as the managing agent. PNC Bank, National Association, Regions Bank and TD Bank also participated in this term loan.