Wednesday, October 13, 2010
PALM BEACH, FL—Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium branded select-service hotels, announced that it successfully closed on its $85 million revolving secured line of credit.
The credit facility carries a three-year term and an interest rate of LIBOR plus a margin based on the company’s leverage ratio; at levels less than 30 percent the margin is 325 basis points, subject to a LIBOR floor of 1.25 percent.
Subject to certain conditions, the line of credit has an accordion feature that provides the company with the ability to increase the facility to $110 million.
Participating lenders for the secured line of credit include Barclays Capital, Regions Capital Markets, Credit Agricole Corporate and Investment Bank, UBS Securities and US Bank National Association.
Barclays Capital and Regions Capital Markets acted as joint lead arrangers, Barclays Bank PLC as administrative agent, Regions Bank as syndication agent, with Credit Agricole Corporate and Investment Bank, UBS Securities and US Bank National Association acting as co-documentation agents.
“We have an active acquisition pipeline and this credit facility provides us added flexibility to continue to selectively acquire hotels,” said Dennis M. Craven, Chatham’s chief financial officer.
“We appreciate the support of our lenders as we continue to build Chatham into a premier owner of upscale extended-stay and premium branded select-service hotels.”
Additional information about Chatham may be found at http://www.chathamlodgingtrust.com/.
Jerry Daly, Carol McCune, (Media ), Daly Gray Public Relations, (703) 435-6293, email@example.com
Dennis Craven) (Company) Chief Financial Officer, (561) 227-1386