RLJ Lodging Trust amends, restates more than $1 billion of loans

By Tali Rackner

Norfolk, Va., April 28 – RLJ Lodging Trust refinanced more than $1 billion of debt, consisting of a $400 million five-year unsecured term loan, a $400 million revolving credit facility, $148.5 million in secured loans provided by Wells Fargo Bank, NA and an $85 million secured loan provided by PNC Bank, NA, according to a press release.

The newly amended and restated five-year term loan and revolver reduced interest rates across the pricing grid by an average of 21 and 26 basis points, respectively, enhanced financial covenants, and extended final maturities to 2021 (including applicable extensions).

RLJ also strengthened its liquidity by increasing the capacity of its revolver to $400 million from $300 million, the release said.

In addition, three Wells Fargo loans secured by four properties totaling $148.5 million were amended and restated to extend the final maturity to 2022 (including extensions) and improve pricing by 15 bps.

Similarly, the PNC loan, which is secured by five properties, was recast to extend the maturity to 2023 (including extensions) and improve pricing by 25 bps. The PNC loan was also upsized to $85 million from $74 million, capitalizing on the improved performance of its underlying assets.

The five-year term loan was arranged by Wells Fargo Securities, LLC; PNC Capital Markets LLC; Regions Capital Markets and U.S. Bank NA as joint lead arrangers and joint bookrunners. The revolver was arranged by Wells Fargo Securities, LLC; Bank of America Merrill Lynch; Capital One, NA and Compass Bank as joint lead arrangers and joint bookrunners.

“With the execution of these transactions, we have eliminated all of our near-term debt maturities,” executive vice president and chief financial officer Leslie Hale said in the release.

“These deals highlight our relentless effort to maintain a fortress balance sheet with well-laddered maturities and low leverage, as well as a significant pool of unencumbered assets.”

RLJ Lodging is a Bethesda, Md.-based real estate investment trust focused on acquiring hotels.

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