BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it has successfully amended and restated its senior unsecured revolving
credit facility. The amended credit facility was increased to $300
million and is composed of a $200 million unsecured revolving credit
facility and a $100 million unsecured term loan. The pricing on the
amended credit facility has been significantly reduced and the facility
now matures in July 2016 with an option to extend to July 2017. All
other business terms are substantially the same as the prior credit
facility.
“We are extremely pleased with the continued strong support from our
bank group,” noted Raymond D. Martz, Chief Financial Officer for
Pebblebrook Hotel Trust. “This amended credit facility allows us to
substantially reduce our borrowing costs, while also extending the
maturity of our facility and increasing the capital we have available
for future acquisitions and capital investments. This amended credit
facility further reduces our overall cost of capital while also enabling
us to maintain our targeted conservative capital structure.”
The amended revolving credit facility’s interest rate is based on a
pricing grid with a range of 175 to 250 basis points over LIBOR, based
on the Company’s leverage ratio. Based on the Company’s current leverage
ratio, the interest rate on the revolving credit facility would be
approximately 2.0 percent. The credit facility also includes an
accordion option that allows the Company to request additional lender
commitments up to a total of $600 million. The Company currently has no
outstanding balance on the $200 million revolving credit facility.
In addition to the $200 million unsecured revolving credit facility, the
Company also completed a $100 million unsecured term loan. The term loan
has a five-year term maturing July 2017 and a 30-day delayed draw
feature. The interest rate on the unsecured term loan is based on a
pricing grid similar to the pricing grid on the Company’s amended
revolving credit facility and is determined by the Company’s leverage
ratio. The Company has not yet utilized this new $100 million term loan,
but it anticipates that it will do so within the next 30 days.
The Company’s $300 million unsecured credit facility is led by Merrill
Lynch, Pierce, Fenner & Smith Incorporated. Bank of America, N.A. serves
as the Administrative Agent, U.S. Bank National Association serves as
the Syndication Agent and Raymond James Bank, N.A., Regions Bank and
Wells Fargo Bank, National Association serve as Documentation Agents.
The following banks are also participants in the credit facility:
Citibank, N.A.; PNC Bank, National Association; Royal Bank of Canada;
and Capital One, N.A.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is a publicly traded real estate investment
trust (“REIT”) organized to opportunistically acquire and invest
primarily in upper upscale, full service hotels located in urban markets
in major gateway cities. The Company owns 23 hotels, comprised of 17
wholly owned hotels, with a total of 4,161 guest rooms and a 49 percent
joint venture interest in six hotels with 1,733 guest rooms. The Company
owns, or has an ownership interest in, hotels located in ten states and
the District of Columbia, including 15 markets: San Diego, California;
San Francisco, California; Santa Monica, California; West Hollywood,
California; Miami, Florida; Buckhead, Georgia; Bethesda, Maryland;
Boston, Massachusetts; Minneapolis, Minnesota; New York, New York;
Portland, Oregon; Philadelphia, Pennsylvania; Columbia River Gorge,
Washington; Seattle, Washington; and Washington, DC. For more
information, please visit www.pebblebrookhotels.com.
This press release contains certain “forward-looking” statements
relating to, among other things, potential incurrence of indebtedness.Forward-looking statements are generally identifiable by use of
forward-looking terminology such as “may,” “will,” “should,”
“potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,”
“approximately,” “believe,” “could,” “project,” “predict,” “forecast,”
“continue,” “plan” or other similar words or expressions.Forward-looking
statements are based on certain assumptions and can include future
expectations, future plans and strategies, financial and operating
projections or other forward-looking information.These
forward-looking statements are subject to various risks and
uncertainties, many of which are beyond the Company’s control, which
could cause actual results to differ materially from such statements.These risks and uncertainties include, but are not limited to, the
state of the U.S. economy and the supply of hotel properties, and other
factors as are described in greater detail in the Company’s filings with
the Securities and Exchange Commission, including, without limitation,
the Company’s Annual Report on Form 10-K for the year ended December 31,
2011.Unless legally required, the Company disclaims any
obligation to update any forward-looking statements, whether as a result
of new information, future events or otherwise.
For further information about the Company’s business and financial
results, please refer to the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors”
sections of the Company’s SEC filings, including, but not limited to,
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
copies of which may be obtained at the Investor Relations section of the
Company’s website at www.pebblebrookhotels.com.
All information in this release is as of July 16, 2012.The
Company undertakes no duty to update the statements in this release to
conform the statements to actual results or changes in the Company’s
expectations.
Pebblebrook Hotel Trust
Raymond D. Martz, 240-507-1330
Chief
Financial Officer
For additional information or to receive press
releases via email, please visit our website at www.pebblebrookhotels.com
Source: Pebblebrook Hotel Trust