RLJ Lodging driving by with $400 million five-year secured notes; initial talk low 4% area

By Paul A. Harris

Portland, Ore., June 10 – RLJ Lodging Trust, LP plans to price a $400 million offering of five-year senior secured notes (expected ratings Ba3/BB-) in a Thursday drive-by following a conference call with investors, according to market sources.

Initial price talk is in the low 4% area, a bond trader said.

Wells Fargo Securities LLC is the left bookrunner. BofA Securities Inc., PNC Capital Markets LLC, Capital One Securities Inc., Regions Securities LLC, TD Securities (USA) LLC, SMBC Nikko Securities America Inc., Barclays, Truist Securities Inc. and Scotia Capital (USA) Inc. are the joint bookrunners.

Raymond James & Associates Inc., BMO Capital Markets Corp. and RBC Capital Markets LLC are the co-managers.

The Rule 144A for life notes become callable after two years at par plus 50% of the coupon.

Proceeds will be used to pay down term loans due in 2022 and 2023, as well as to repay secured mortgage debt due in 2022, and for general corporate purposes.

The prospective issuer is a self-advised and self-administered Bethesda, Md., real estate investment trust that owns hotels.

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