- Hersha Hospitality Trust ( NYSE: HT ) has refinanced its $500M senior secured credit facility, which consists of $400M term loan and an undrawn $100M revolving credit line.
- The credit facility will mature in August 2024 and has one 12-month extension option. The facilities will bear 2.50% interest at over the applicable adjusted term SOFR.
- Hersha Hospitality ( HT ) used existing swap to hedge $300M the new term loan at a fixed rate of ~3.95%. Following the refinancing, 72% of the firm's outstanding debt is either fixed or hedged through various derivative instruments.
- CEO Jay Shah said, "The refinancing of our existing credit facilities sustains the significant efforts undertaken to optimize our balance sheet and provides additional flexibility to execute our business plan. The utilization of the existing swap on $300M of the new term loan is forecasted to result in approximately $10 million of interest expense savings over the life of the new term loan.
- In other news, the hospitality REIT closed the first tranche of six of the previously announced disposition of seven non-core Urban Select Service properties for gross proceeds of ~$435.9M.
For further details see:
Hersha Hospitality Trust refinances $500M credit facility