Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian
GET TICKETS

Chesapeake Lodging Trust Extends Maturity and Reduces Borrowing Costs of Its Revolving Credit Facility

Share:

Chesapeake Lodging Trust (NYSE:CHSP) (the "Trust") announced today that
it has amended its credit agreement to extend the initial maturity to
May 2022 and lower the interest rate spread over LIBOR charged on
outstanding borrowings under the unsecured revolving credit facility.
The revolving credit facility is led by Wells Fargo Bank, N.A., as
administrative agent, JPMorgan Chase Bank, N.A., as syndication agent,
and Deutsche Bank Securities Inc., PNC Bank, N.A., and Regions Bank, as
documentation agents.

The amended credit agreement continues to provide for a maximum amount
that the Trust may borrow under the revolving credit facility of $300.0
million, and also provides for the possibility of further future
increases, up to a maximum of $450.0 million, in accordance with the
terms of the amended credit agreement. The actual amount that the Trust
can borrow under the revolving credit facility continues to be based on
the value of the Trust's hotels included in the borrowing base, as
defined in the amended credit agreement. The interest rate spread over
LIBOR for borrowings under the revolving credit facility was reduced to
LIBOR, plus 1.45% - 2.20% (the spread over LIBOR based on the Trust's
consolidated leverage ratio). The initial term of the amended credit
agreement will now expire in May 2022, but the term may be extended for
one year subject to satisfaction of certain customary conditions. The
amended credit agreement contains the same financial covenants as those
in effect prior to the amendment.

ABOUT CHESAPEAKE LODGING TRUST

Chesapeake Lodging Trust is a self-advised lodging real estate
investment trust (REIT) focused on investments primarily in
upper-upscale hotels in major business and convention markets and, on a
selective basis, premium select-service hotels in urban settings or
unique locations in the United States. The Trust owns 21 hotels with an
aggregate of 6,479 rooms in eight states and the District of Columbia.
Additional information can be found on the Trust's website at www.chesapeakelodgingtrust.com.

View Comments and Join the Discussion!