DiamondRock Hospitality amends revolver, term loans

By Taylor Fox

New York, Jan. 25 – DiamondRock Hospitality Co. further amended the credit agreement for its $400 million revolving credit facility and $350 million unsecured term loan and the credit agreement for its $50 million unsecured term loan to extend the waiver period for the testing of financial covenants to Dec. 31, 2021 from March 31, according to a news release.

The amendments also extend the modification of certain financial covenants to March 31, 2023 once quarterly testing resumes.

The amendments provide DiamondRock with the ability to retain proceeds from equity issuances to acquire unencumbered properties or hold as cash as long as the revolving credit facility balance is less than $175 million and the ability to retain proceeds from the sale of unencumbered properties, so long as the proceeds are used within 180 days to acquire unencumbered properties.

“The amendments allow DiamondRock to remain in compliance with all of its loan requirements and enhance the flexibility to opportunistically pursue new investments and recycle capital during this period of dislocation,” said DiamondRock president and chief executive officer Mark W. Brugger in the release.

DiamondRock is a Bethesda, Md.-based hospitality-focused real estate investment trust.

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