LaSalle Hotel Properties has announced that it has refinanced $1.05 billion of debt, reducing the interest cost on its $750.0 million revolver and $300.0 million five-year term loan and extending their maturities to January 2019.
The revolver and term loan include accordion features which, subject to certain conditions, entitle the company to request additional lender commitments, allowing for total commitments up to $1.05 billion for the revolver and $500 million for the term loan.
“We were able to extend the maturity to 2019 and reduce our interest costs, resulting in current weighted-average interest cost of 3.8 per cent for all company debt.
“We have less than $9 million of debt maturing in 2014 and our balance sheet remains in excellent shape.”
The interest rate for the new revolver is based on a pricing grid with a range of 170 to 245 basis points over LIBOR, based on the company’s leverage ratio and is currently LIBOR plus 170 basis points, or 1.86 per cent.
Pricing for the term loan is LIBOR plus 160 to 235 basis points, based on the Company’s leverage ratio.
The term loan remains swapped, fixing LIBOR through August 2017, resulting in a current interest rate of 2.37 per cent.
The revolver was arranged by Citigroup Global Markets, BMO Capital Markets and RBS Securities Inc. as Joint Lead Arrangers and Book Running Managers.
The term loan was arranged by Citigroup Global Markets.