Pebblebrook Hotel Trust Completes $600M Credit Facility

Pebblebrook Hotel Trust

(the “Company”) today announced that it has successfully amended and restated its senior unsecured revolving credit facility. The amended credit facility has been increased to $600 million and is composed of a $300 million unsecured revolving credit facility, an extension of the Company's existing $100 million unsecured term loan, and a 180-day option to draw down an additional $200 million in unsecured term loan proceeds. The pricing on the amended credit facility has been significantly reduced, the revolving credit facility now matures in January 2019 with options to extend the maturity date to January 2020, and the term loan now matures in January 2020. “We greatly appreciate our bank group's continued support,” commented Raymond D. Martz, Chief Financial Officer for Pebblebrook Hotel Trust. “We are thrilled with the opportunity to expand our bank group with this new credit facility and bolster our future available debt capacity. Furthermore, the amended credit facility extends the maturity of our unsecured revolver and term loans while providing us with reduced overall borrowing costs. The amended facility also allows for further flexibility through additional access to capital for capital reinvestments such as renovations and repositionings and potential future acquisition opportunities as they may arise.” The amended revolving credit facility's interest rate is based on a pricing grid with a range of 155 to 230 basis points over LIBOR, determined by the Company's leverage ratio. At the Company's current leverage ratio, the interest rate on the revolving credit facility would be approximately 1.7 percent. The credit facility also includes an accordion option that allows the Company to request additional lender commitments up to a total of $1.0 billion. The Company currently has no outstanding balance on the $300 million revolving credit facility. In addition to the $300 million unsecured revolving credit facility, the Company also extended the maturity date of its $100 million unsecured term loan and received commitments for an additional $200 million in unsecured term loan proceeds, which can be drawn at any time over the next 180 days. The term loans mature in January 2020. The interest rate on the unsecured term loans is based on a pricing grid similar to the pricing grid on the Company's amended revolving credit facility, with a range of 150 to 225 basis points over LIBOR, and is determined by the Company's leverage ratio. The Company's $600 million unsecured credit facility is led by Bank of America Merrill Lynch. Bank of America, N.A. serves as the Administrative Agent, U.S. Bank National Association serves as the Syndication Agent and Raymond James Bank, N.A., Regions Bank and Wells Fargo Bank, National Association serve as Documentation Agents. The following banks are also participants in the credit facility: Citigroup Global Markets, Inc., PNC Bank, National Association, Capital One, N.A., Citizens Bank, Branch Banking and Trust Company, and Sumitomo Mitsui Banking Corporation.