RLJ Lodging Trust Gets Commitment Of Refinancing Over $1.0 Billion Debt

RLJ Lodging Trust RLJ disclosed it was successful in refinancing more than $1.0 billion of debt. According to the company, it consisted of a $400.0 million unsecured term loan, a $400.0 million revolving credit facility, $148.5 million in secured loans provided by Wells Fargo Bank, N.A., and an $85.0 million secured loan provided by PNC Bank, N.A.

President and CEO Thomas Baltimore, Jr. said, "RLJ has one of strongest balance sheets among publicly traded lodging REITs. Year-to-date, we have successfully refinanced more than a billion dollars of near-term maturities and demonstrated our commitment to bolstering and maintaining a best-in-class balance sheet."

RLJ Lodging said the newly amended and restated 2013 Five-Year Term Loan and Revolver reduced interest rates across the pricing grid by an average of 21 and 26 basis points, respectively, enhanced financial covenants, and extended final maturities to 2021. The Company added it could strengthen its liquidity by boosting the capacity on its Revolver to $400.0 million from $300.0 million.

Aside from that, the Company addressed its near-term secured debt maturities, further staggering its debt and improving its balance sheet. The company added that three Wells Fargo loans secured by four properties totaling $148.5 million were amended and restated to extend the final maturity to 2022 (including extensions) and improve pricing by 15 basis points.

RLJ Loding's CFO Leslie Hale said, "With the execution of these transactions, we have eliminated all of our near-term debt maturities. These deals highlight our relentless effort to maintain a fortress balance sheet with well-laddered maturities and low leverage, as well as a significant pool of unencumbered assets."