PHILADELPHIA--(BUSINESS WIRE)--Hersha Hospitality Trust (NYSE: HT, “Hersha” or the “Company”), owner of upscale hotels in urban gateway markets, announced that the Company has closed on a new $500 million senior unsecured credit facility (the “Facility”) that is expandable to $850 million. The credit facility consists of a $250 million senior unsecured revolving line of credit (the “Revolving Credit Facility”) and a $250 million senior unsecured term loan (the “Term Loan”). This new Facility amends and restates the Company’s existing $400 million senior secured revolving credit facility.
“We appreciate the financial community’s extraordinary support in the refinancing and enhancing of our Facility. The new Facility affords the Company greater financial flexibility, extends our debt maturities and reduces our weighted average cost of debt,” commented Ashish R. Parikh, Chief Financial Officer. “We were particularly encouraged by the oversubscription of the Facility by the bank group. The level of interest demonstrated confidence in the Company’s strategic direction, conservative balance sheet and the inherent value of our high quality, urban transient hotel portfolio.”
The interest rate for the Revolving Credit Facility is based on a pricing grid with a range of 170 to 245 basis points over LIBOR, based on the Company’s leverage ratio. Pricing for the Term Loan is LIBOR plus 160 to 235 basis points also based on the Company’s leverage ratio. The Company will use the new Facility for general corporate purposes.
The Facility was arranged by Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Book Running Managers. Bank of America, N.A., Manufacturers and Traders Trust Company, Raymond James Bank, N.A., TD Bank, N.A., PNC Bank, National Association, and Regions Bank acted as Co-Documentation Agents. Compass Bank, Fifth Third Bank, Santander Bank, N.A., and U.S Bank, National Association acted as Senior Managing Agents. Other lenders under the Facility included The Provident Bank, Beneficial Mutual Savings Bank, First Commercial Bank, Goldman Sachs Bank USA, and Morgan Stanley Bank, N.A.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality, upscale hotels in urban gateway markets. The Company’s 51 hotels totaling 8,120 rooms are located in New York, Boston, Philadelphia, Washington, DC, Miami and select markets on the West Coast. The Company’s shares are traded on The New York Stock Exchange-Euronext under the ticker “HT”. For more information on the Company, and the Company’s hotel portfolio, please visit the Company's website at www.hersha.com.
Forward-Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement. For a description of these factors, please review the information under the heading “Risk Factors” included in Hersha Hospitality Trust’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the U.S. Securities Exchange Commission.
