Summit Hotel Properties has successfully completed the refinancing of its $200m senior credit facility in partnership with GIC, Singapore's sovereign wealth fund.
This significant financial move eliminates all material debt maturities for the company through 2024 and maintains competitive pricing, reinforcing its financial stability.
Under the new credit agreement, both the $125m Revolving Credit Facility and the $75m Term Loan have an extended maturity date of September 2028.
Importantly, the interest rate pricing remains in line with the previous credit facility, with SOFR+215 basis points for the $125m Revolver and SOFR+210 basis points for the $75m Term Loan.
The agreement largely maintains other terms from the joint venture's previous credit facility agreement.
Improved financial outlook
With this successful refinancing, Summit Hotel Properties faces no material debt maturities until 2024. Furthermore, the company's average length to maturity now exceeds three years, including extension options.
This achievement is bolstered by approximately 80% of the company's pro rata debt and preferred equity capital having a fixed interest rate due to interest rate derivative agreements.
Key players in the transaction
BofA Securities acted as the sole lead arranger and sole bookrunner in this refinancing transaction while Capital One, National Association and Wells Fargo Securities served as Co-Documentation Agents.
JPMorgan Chase Bank also participated as a lender and Bank of America served as the Administrative Agent.
Summit Hotel Properties's successful credit facility refinancing marks a strategic move to strengthen its financial position and ensure long-term stability in the market.
