DiamondRock Hospitality Completes $200 Million Unsecured Credit Facility
BETHESDA, Md., Nov. 26, 2012
BETHESDA, Md., Nov.26, 2012 /PRNewswire/ --DiamondRock Hospitality Company
(the "Company") (NYSE: DRH) announced today that it successfully amended and
restated its $200 million senior unsecured credit facility. The amended
facility pricing grid has been significantly reduced and the facility now
matures in January 2018, inclusive of a one-year extension option, which is
subject to certain customary conditions. The amended facility also includes an
accordion feature to expand up to $400 million, subject to lender consent.
"We are extremely pleased to lower our borrowing costs, extend the maturity
date and create additional financial flexibility. We appreciate the continued
support from our lenders," stated Sean M. Mahoney, Chief Financial Officer of
DiamondRock Hospitality Company.
The interest rate on the new facility is determined in accordance with a
pricing grid ranging from 175 to 275 basis points over LIBOR, based on the
Company's ratio of net indebtedness to EBITDA. This new pricing grid
represents a 50 to 75 basis point reduction from the previous pricing grid,
and, as a result of this amendment, the interest rate is currently 190 basis
points over LIBOR. The Company also lowered the unused facility fees and
modified certain financial covenants. The Company currently has $105 million
in outstanding borrowings under the facility.
The new facility was co-led by Wells Fargo Securities, LLC and Merrill Lynch,
Pierce, Fenner & Smith Incorporated who acted as Joint Lead Arrangers and
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust
(REIT) that is an owner of premium hotel properties. The Company owns 27
premium hotels with approximately 11,600 rooms and holds the senior mortgage
loan on another premium hotel. The Company's hotels are generally operated
under globally recognized brands such as Hilton, Marriott, and Westin. For
further information, please visit DiamondRock Hospitality Company's website at
SOURCE DiamondRock Hospitality Company
Contact: Sean Mahoney, +1-240-744-1150
Press spacebar to pause and continue. Press esc to stop.