Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it has exercised the accordion options on two of its existing unsecured
term loans to borrow an additional $150.0 million. The Company’s
existing $125.0 million term loan maturing in January 2021 and the
Company’s existing $100.0 million term loan maturing in April 2022 were
increased by $75.0 million each.
“We are pleased with the strong interest and support shown by our bank
group with this $150.0 million of term loan increases,” commented
Raymond D. Martz, Chief Financial Officer for Pebblebrook Hotel Trust.
“We expect to use proceeds from this financing to reduce the balance on
our existing $450.0 million unsecured credit facility, which will have
an outstanding balance after paydown of $45.0 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 $75.0 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 percent. 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 $75.0 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 percent. 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.
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 37 hotels, including 31 wholly
owned hotels with a total of 7,408 guest rooms and a 49% joint venture
interest in six hotels with a total of 1,787 guest rooms. The Company
owns, or has an ownership interest in, hotels located in 11 states and
the District of Columbia, including: San Francisco, California; Los
Angeles, California (Beverly Hills, Hollywood, Santa Monica and West
Hollywood); Boston, Massachusetts; New York, New York; San Diego,
California; Portland, Oregon; Buckhead, Georgia; Naples, Florida;
Seattle, Washington; Miami, Florida; Washington, DC; Philadelphia,
Pennsylvania; Columbia River Gorge, Washington; Nashville, Tennessee;
Bethesda, Maryland and Minneapolis, Minnesota. For more information,
please visit us at www.pebblebrookhotels.com
and follow us on Twitter at @PebblebrookPEB.
This press release contains statements that are “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Act of 1934, as
amended, pursuant to the safe harbor provisions of the Private
Securities Reform Act of 1995. Forward-looking statements are
generally identifiable by use of forward-looking terminology such as
“may,” “will” or other similar words or expressions. These
forward-looking statements relate to the payment of the dividends. 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, not all of which are known to the Company and 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, supply and demand in the hotel industry and other factors as
are described in greater detail in the Company’s filings with the
Securities and Exchange Commission (“SEC”), including, without
limitation, the Company’s Annual Report on Form 10-K for the year ended
December 31, 2014. 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 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
and at www.sec.gov.
All information in this release is as of January 6, 2016. 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.
For additional information or to receive press releases via email,
please visit our website at www.pebblebrookhotels.com
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