Boykin Lodging Company (NYSE: BOY) announced today that it has closed on a new, unsecured $250 million line of credit. The company’s previous credit facility was $150 million and was secured by Boykin’s hotel properties.
“Boykin Lodging has grown dramatically over the last 18 months, and this new, expanded, unsecured credit arrangement reflects confidence in our business strategy and our ability to execute the strategy in ways that create value,” said Robert W. Boykin, chairman, president and chief executive officer of Boykin Lodging Company.
The new credit facility’s interest rate is the same as the previous facility’s, varying from as low as 1.40% over the London interbank offered rate (LIBOR) to no more than 1.75% over LIBOR, depending on the company’s total debt levels. The new line of credit is provided by a lending syndicate led by Lehman Brothers Holdings Inc. and Wells Fargo Bank, NA, which is the administrative agent.