BETHESDA, MD—Pebblebrook Hotel Trust has originated a $1.75 billion term loan. The new term loan provides funding needed for the company’s previously announced pending merger with LaSalle Hotel Properties, which includes paying off LaSalle’s current outstanding debt balances and other transaction closing costs.
The term loan’s terms, pricing and covenants are substantially the same as those for the company’s current outstanding term loans. The term loan is allocated into five individual tranches, maturing between 2020 and 2024, each of which is pre-payable without penalty. The financing will only be funded when the company’s pending merger with LaSalle is completed, which is targeted for Nov. 30 and is subject to approvals of shareholders of both companies.
“We are incredibly appreciative of the strong support from our bank group on this significant financing effort as our company enters this transformative period,” said Raymond D. Martz, CFO for Pebblebrook Hotel Trust. “We are excited to welcome several new financing partners who have joined our bank group as part of this financing effort. We are thrilled to announce that we are one step closer to finalizing our merger with LaSalle which remains on track to close on Nov. 30.”