S.F. Hilton, Inc. operates hotels. The company was incorporated in 2000 and is based in the United States. S.F. Hilton, Inc. operates as a subsidiary of Hilton Hospitality, Inc.
S.F. Hilton LLC and P55 Hotel Owner LLC Announces $725.0 Million Commercial Mortgage-Backed Securities Loan
Oct 14 16
On October 7, 2016, JPMorgan Chase Bank, National Association, Deutsche Bank, AG, New York Branch, Goldman Sachs Mortgage Company, Barclays Bank PLC and Morgan Stanley Bank, N.A. extended to S.F. Hilton LLC and P55 Hotel Owner LLC (together, the SF CMBS Borrowers), a $725.0 million commercial mortgage-backed securities loan (the SF CMBS Loan). The SF CMBS Loan is secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (the Subject Hotels). The SF CMBS Borrowers and the SF CMBS Sponsor are unrestricted subsidiaries for purposes of the debt agreements governing the Company's senior secured credit facilities and senior notes. The Company has applied a portion of the loan proceeds to repay debt secured by the Hilton San Francisco Union Square and intends to use the remaining net proceeds of the SF CMBS Loan to prepay amounts outstanding under its existing $3.5 billion commercial mortgage-backed securities loan. The SF CMBS Loan has a term of seven years. The SF CMBS Loan bears interest at a fixed rate per annum of 4.1145%. The SF CMBS Loan has no amortization payments. the SF CMBS Borrowers may prepay the SF CMBS Loan in full, or, in connection with a permitted property release or partial property release, in part, in each case, subject to payment of (i) a yield maintenance premium in the case of any prepayment made prior to the interest payment date occurring in December 2019; (ii) the payment of all interest scheduled to accrue through the end of the applicable interest period in which prepayment is made; and (iii) all other sums then due and payable under the loan agreement, including the lenders' reasonable, actual out-of-pocket costs and expenses in connection with such prepayment. Mandatory prepayments are required in connection with certain casualties or condemnations of a property. Once repaid, no further borrowings will be permitted under the SF CMBS Loan. Certain obligations of the SF CMBS Borrowers with respect to the SF CMBS Loan are guaranteed (the SF CMBS Guarantee) by Park Intermediate Holdings LLC (the SF CMBS Sponsor), a subsidiary of the Company. Under the SF CMBS Guarantee, (i) the SF CMBS Sponsor has agreed to indemnify the lenders for losses with respect to customary bad-boy acts of the SF CMBS Borrowers and their affiliates and (ii) the SF CMBS Loan will become fully recourse to the SF CMBS Sponsor upon a voluntary or collusive involuntary bankruptcy of the SF CMBS Borrowers or the appointment of a custodian, receiver, trustee or examiner for the SF CMBS Borrowers if consented to by the SF CMBS Borrowers. Notwithstanding the foregoing, the aggregate liability of the SF CMBS Sponsor as a result of clause (ii) above is capped at 10% of the then outstanding principal balance of the SF CMBS Loan. The SF CMBS Sponsor also has executed a guaranty agreement pursuant to which it guarantees payment of the deductible with respect to flood, windstorm and earthquake insurance coverages to the extent such deductible exceeds the base deductible that would otherwise be permitted by the loan documents.