Boykin Lodging Company (NYSE: BOY) announced today that it has closed on a new $108 million term loan and a new $100 million line of credit, refinancing the Company`s previous $175 million line of credit.
“Putting these new debt facilities in place accomplishes one of the goals we set for ourselves at the beginning of the year,” said Robert W. Boykin, chairman, president and chief executive officer of Boykin Lodging Company. “We have lengthened our average debt maturities, mitigated our variable rate debt exposure and, most importantly, increased our borrowing capacity to fund some projects we have been working on for the last two years as well as react to additional opportunities.”
The new $108 million term loan, provided by an affiliate of Lehman Brothers Holdings, Inc., is secured by nine of the Company`s hotel properties. The debt matures in five years (including extensions) and carries an interest rate that floats at 2.35 percent over the London interbank offered rate (LIBOR). The Company has purchased interest rate protection to cap the overall interest rate at no more than 10.25%.
The new $100 million secured line of credit facility`s interest rate varies from as low as 2.25% over LIBOR to no more than 2.75% over LIBOR, depending on the Company`s total debt levels. The facility matures in three years and contains a one-year extension option. A lending syndicate led by Wells Fargo Bank, NA (which is the administrative agent) and Lehman Brothers Holdings, Inc. provided the new line of credit.
Boykin Lodging Company is a real estate investment trust that currently owns 32 full-service, upscale commercial and resort hotels containing a total of 9,110 rooms located in California, Colorado, Florida, Idaho, Illinois, Indiana, Maryland, Minnesota, Missouri, Nebraska, New York, New Jersey, North Carolina, Tennessee, Ohio, Oregon, and Washington.