Hospitality Properties updates definitions under revolver, term loan

By Marisa Wong

Madison, Wis., Sept. 3 - Hospitality Properties Trust amended some definitions and covenants under its revolving credit facility and its term loan, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, Hospitality Properties restated the interest rate for Libor loans as (a) Libor divided by (b) a percentage equal 1 minus the stated maximum rate of all reserves required to be maintained for eurocurrency funding, as specified by Regulation D of the Federal Reserve.

The company also modified its covenant not to amend, modify or default in performance of its business management and property management agreements to align the terms of the loan agreements with the standards in its other material contracts.

In addition, the company revised the definition of change of control to increase the percentage referenced in the loan agreements to 25% from 10% of its total outstanding common shares.

Wells Fargo Bank, NA is the administrative agent for both the revolver and the term loan.

The amendments were completed on Aug. 27.

The real estate investment trust is based in Newton, Mass.

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