Strategic Hotels & Resorts, Inc. Enters into New Credit Facilities
May 28 15
Strategic Hotels & Resorts, Inc. announced that it has closed a new $750.0 million unsecured credit facility with an accordion feature allowing for additional borrowing capacity up to $1.0 billion. The new facility is comprised of a $450.0 million unsecured revolving credit facility and a $300.0 million unsecured term loan. The new facility replaces a $300.0 million stock secured revolving credit facility. The new revolving credit facility's interest rate is based upon a leverage-based pricing grid ranging from LIBOR plus 165 basis points to LIBOR plus 240 basis points. Initial pricing will be LIBOR plus 165 basis points, which is a reduction from the previous facility's pricing of LIBOR plus 200 basis points. The new term loan's interest rate is also based upon a leveraged based pricing grid ranging from LIBOR plus 160 basis points to LIBOR plus 235 basis points. Initial pricing will be LIBOR plus 160 basis points. At closing, the company has $80.0 million outstanding on the revolving credit facility in addition to the $300.0 million funded unsecured term loan. The combined unsecured facility has a five-year term and will mature in May 2020. The unsecured facility is supported by a pool of unencumbered assets that will initially consist of nine of the company's hotels: the Fairmont Chicago, Fairmont Scottsdale Princess, Four Seasons Austin, Four Seasons Jackson Hole, Four Seasons Scottsdale Resort at Troon North, Four Seasons Silicon Valley, Marriott Lincolnshire, Ritz-Carlton Laguna Niguel and Westin St. Francis. In addition, the company closed a $115.0 million term loan secured by the Ritz-Carlton Half Moon Bay hotel. Under terms of the agreement, the loan bears interest at a floating rate of LIBOR plus 240 basis points and has a five-year initial term with two, one-year extension options available to the company upon satisfying certain financial and other conditions. Deutsche Bank Securities Inc. originated the financing. Simultaneously, the company repaid the previously outstanding $209.6 million loan encumbered by the Westin St. Francis and the $93.1 million loan encumbered by the Fairmont Chicago that were cross-collateralized, priced at a fixed interest rate of 6.09% and set to mature in June 2017. The repayment will eliminate approximately $18.9 million of annual interest expense. In connection with the repayment, the company paid a prepayment penalty totaling approximately $32.9 million.
Strategic Hotels & Resorts, Inc. Reports Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Provides Earnings Outlook for the Year 2015
May 4 15
Strategic Hotels & Resorts, Inc. reported consolidated earnings results for the first quarter ended March 31, 2015. For the period, the company’s total revenues were $325,271,000 against $194,655,000 a year ago. Operating income was $35,590,000 against $654,000 a year ago. Income from continuing operations was $12,414,000 against $65,355,000 a year ago. Net Income Attributable to SHR Common Shareholders was $15,811,000 against $217,158,000 a year ago. Diluted income per share from continuing operations attributable to SHR common shareholders was $0.04 against $0.25 a year ago. Diluted net income per share attributable to SHR common shareholders was $0.04 against $0.97 a year ago. EBITDA was $72,679,000 against $293,849,000 a year ago. Comparable EBITDA was $74,100,000 against $41,174,000 a year ago. Comparable funds from operations were $56.3 million against $12.2 million a year ago. Comparable FFO per fully diluted share was $0.20 against $0.06 a year ago. The increase in revenue was primarily driven by the acquisition of the Four Seasons Resort Scottsdale at Troon North and the Montage Laguna Beach resort, as well as the consolidation of both the Hotel del Coronado and Fairmont Scottsdale Princess hotel. FFO was $50,950 million against $8,093 million a year ago. FFO Fully Diluted was $51,097 million against $9,040 million a year ago.
For the year 2015, the company currently expects Comparable EBITDA in the range of $320 million to $340 million against $300 million to $320 million as previously expected. Comparable FFO per diluted share expects in the range of $0.85 to $0.93 against $0.77 to $0.85 as previously expected. Net Income Attributable to Common Shareholders expects in the range of $91.6 million to $111.6 million, depreciation and amortization expects in the range of $159.4 million to $159.4 million, interest expense expects in the range of $89.3 million to $89.3 million, income tax expects in the range of $8.1 million to $8.1 million.
Strategic Hotels & Resorts Seeks Acquisitions
May 4 15
Strategic Hotels & Resorts, Inc. (NYSE:BEE) is looking for acquisition opportunities. Rip Gellein, Chairman and Chief Executive Officer of Strategic Hotels & Resorts said, "I think we're still in a place where we would believe that taking the cash flow from the enterprise and prioritizing paying down our debt, and potentially, if there's something else that's really interesting out there, using some of that for acquisitions is probably the first two priorities for the moment."