RLJ Lodging Trust Successfully Refinances $600 Million Senior Unsecured Credit Facility and $225 Million of Term Loans
May 16 2023 - 8:00AM
Business Wire
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced
that it successfully recast its $600.0 million senior unsecured
revolving credit facility (the “Revolver”) and entered into a new
$225.0 million senior unsecured term loan (the “Term Loan”).
“These transactions underscore our approach to prudently
managing our balance sheet by continuing to improve the laddering
of our maturities and reducing our floating interest rate exposure
in an uncertain environment,” commented Leslie D. Hale, President
and Chief Executive Officer. “Being able to add incremental
flexibility while extending our maturity profile is a testament to
our strong lender relationships. With these further enhancements to
our balance sheet, we remain extremely well-positioned to continue
to execute on our growth initiatives.”
The amendment to the Revolver extends the maturity to May 2027
with an option to extend up to one additional year. The new $225
million Term Loan matures in May 2026, and has two, one-year
extension options to May 2028. The proceeds from the new Term Loan
were used to repay two term loans maturing in January 2024. In
addition to improving the Company’s debt maturity profile, the
amendment includes certain modifications to enhance flexibility and
retain the pricing grid from the prior facility.
Additionally, the Company remained active in managing interest
rate risk and executed $250.0 million in interest rate swaps with a
weighted average rate of 2.88%.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate
investment trust that owns primarily premium-branded, high-margin,
focused-service and compact full-service hotels. The Company's
portfolio currently consists of 96 hotels with approximately 21,200
rooms, located in 23 states and the District of Columbia and an
ownership interest in one unconsolidated hotel with 171 rooms.
Forward Looking
Statements
This information contains certain statements, other than purely
historical information, including estimates, projections,
statements relating to the Company’s business plans, objectives and
expected operating results, and the assumptions upon which those
statements are based, that are “forward looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally are identified by the
use of the words “believe,” “project,” “expect,” “anticipate,”
“estimate,” “plan,” “may,” “will,” “will continue,” “intend,”
“should,” “may,” or similar expressions. Although the Company
believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, beliefs and
expectations, such forward-looking statements are not predictions
of future events or guarantees of future performance and the
Company’s actual results could differ materially from those set
forth in the forward-looking statements. Except as required by law,
the Company undertakes no obligation to update or revise publicly
any forward-looking statements, whether as a result of new
information, future events or otherwise. The Company cautions
investors not to place undue reliance on these forward looking
statements and urges investors to carefully review the disclosures
the Company makes concerning risks and uncertainties in the
sections entitled “Risk Factors,” “Forward- Looking Statements,”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” in the Company’s Annual Report, as well
as risks, uncertainties and other factors discussed in other
documents filed by the Company with the Securities and Exchange
Commission.
For additional information or to receive press
releases via email, please visit our website:
http://www.rljlodgingtrust.com
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version on businesswire.com: https://www.businesswire.com/news/home/20230515005880/en/
Sean M. Mahoney, Executive Vice President
and Chief Financial Officer – (301) 280-7774
RLJ Lodging (NYSE:RLJ)
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