Loan & DebtJun 30, 2026, 04:47 PM
Summit Hotel Secures New $650M Senior Unsecured Credit Facility
AI Summary
Summit Hotel Properties, Inc.'s operating partnership, Summit Hotel OP, LP, entered into a new $650 million senior unsecured credit facility. This facility, which refinances the prior credit facility, includes a $400 million revolving credit facility, a $200 million term loan, and a $50 million delayed draw term loan facility. The new agreement extends maturities and features an accordion option to increase total commitments to $900 million, enhancing the company's financial flexibility.
Key Highlights
- Summit Hotel OP, LP entered into a new $650 million senior unsecured credit facility.
- The facility refinances the prior credit facility and includes a $400 million revolving credit facility.
- It also comprises a $200 million term loan and a $50 million delayed draw term loan facility.
- The facility has an accordion feature allowing an increase to an aggregate principal amount of $900 million.
- The $400 million revolver matures on June 29, 2030, extendable to June 29, 2031.
- The $200 million term loan and delayed draw facility mature on June 29, 2031.
- Interest rates are based on SOFR plus a margin between 1.40% and 2.30% depending on leverage ratio.
- Key covenants include a maximum leverage ratio of 7.25:1.00 and minimum consolidated tangible net worth.
Price Impact
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