Strategic Hotels & Resorts, Inc. Announces New $300 Million Credit Facility (États-Unis)
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Strategic Hotels & Resorts, Inc. Announces New $300 Million Credit Facility (États-Unis)
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Catégorie : Amérique du Nord et Antilles - États-Unis - Économie du secteur -
Chiffres et études
Ceci est un communiqué de presse sélectionné par notre comité éditorial et mis en ligne gratuitement le 04-07-2011
Strategic Hotels & Resorts, Inc. (NYSE: BEE) today announced that it has closed a new $300.0 million secured, revolving credit facility with an accordion feature allowing for additional borrowing capacity up to $400.0 million. This new facility replaces a $350.0 million secured, revolving credit facility that was set to mature in March 2012. The facility's interest rate is based upon a leverage-based pricing grid ranging from LIBOR plus 275 basis points to LIBOR plus 375 basis points. Upon closing, the initial interest rate is LIBOR plus 300 basis points, a reduction from the previous facility's pricing of LIBOR plus 375 basis points. The facility matures in three years with a one-year extension available to the Company upon meeting certain financial criteria.
"Over the past 18 months, we have methodically and proactively addressed the various aspects of our balance sheet, significantly reducing our leverage and providing long-term liquidity," said Diane Morefield, Chief Financial Officer of Strategic Hotels & Resorts, Inc. "Establishing this new line of credit is a vital component of our overall balance sheet restructuring strategy, as it provides favorable pricing and terms along with flexible corporate borrowing capacity into 2015."
The facility is secured by the Four Seasons Punta Mita, Marriott Lincolnshire, Ritz-Carlton Half Moon Bay and Ritz-Carlton Laguna Niguel hotels. The Ritz-Carlton Half Moon Bay was previously encumbered by a $76.5 million loan, which was repaid on June 29, 2011. The Company also unencumbered the Four Seasons Washington, D.C., which was security for the previous credit facility, in anticipation of executing a single asset mortgage financing on the property to be completed in the third quarter.
Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC served as Joint Book Runners and Joint Lead Arrangers for the facility. Citibank, N.A. and Wells Fargo Bank, National Association are Co-Documentation Agents. Aareal Capital Corporation, Bank of America, N.A., Morgan Stanley Senior Funding, Inc., and The PrivateBank and Trust Company are Senior Managing Agents. Sumitomo Mitsui Banking Corporation and Raymond James Bank, FSB are additional lenders.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership interests in 17 properties with an aggregate of 7,762 rooms.
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