PHILADELPHIA--(BUSINESS WIRE)--Hersha Hospitality Trust (NYSE: HT, “Hersha” or the “Company”), owner of upscale hotels in urban gateway markets, announced the Company closed on a new $300 million Senior Unsecured Term Loan (the “Term Loan”). The new Term Loan, together with the Company’s $500 million senior unsecured credit facility (the “Facility”), consisting of a $250 million revolving line of credit and a $250 million term loan, expands the Company’s senior unsecured borrowing capacity from $500 million to $800 million.
“We value our bank group’s continued support of Hersha’s unique hotel portfolio. We were particularly encouraged by the oversubscription of the Term Loan by the bank group. We believe the level of interest demonstrates confidence in the Company’s strategic direction, conservative balance sheet, and the inherent value of our high quality, urban transient hotel portfolio,” stated Ashish R. Parikh, Chief Financial Officer.
The Term Loan’s interest rate is based on a pricing grid with a range of 150 to 225 basis points over LIBOR, based on the Company’s leverage ratio, and matures in 5 years from the closing date. At closing, $210 million was advanced to the Company as a single draw. The remaining $90 million will be available to the Company on a delayed draw basis up to 360 days after the closing date in one or more advances. The Company will utilize the Term Loan to refinance existing indebtedness, as well as for general corporate purposes, potential acquisitions and capital expenditures.
The Term Loan 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 Fifth Third Bank, an Ohio Banking Corporation acted as Co-Documentation Agents. Compass Bank, First Commercial Bank, Goldman Sachs Bank, USA and U.S. Bank, National Association acted as Senior Managing Agents. Other lenders included Beneficial Mutual Savings Bank and The Provident Bank.
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 52 hotels totaling 8,414 rooms are located in New York, Boston, Philadelphia, Washington, DC and select markets on the West Coast and South Florida. The Company's shares are traded on The New York Stock Exchange under the ticker “HT”.
Forward Looking Statement
This press release contains forward-looking information based upon the Company’s current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company’s control, including the factors listed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company’s filings with the SEC.
