Eagle Hospitality repays DIP facility using property sale proceeds

By Sarah Lizee

Olympia, Wash., June 21 – Eagle Hospitality Real Estate Investment Trust unit EHT US1, Inc. said that part of the $153.9 million of proceeds from the sale of five of its properties was used to repay the full amount under its $100 million debtor-in-possession credit facility, according to a company announcement.

As previously reported, the company received approval from the U.S. Bankruptcy Court for the District of Delaware to enter into the facility, which provided that an additional $25 million would be made available in the event that the debtors reopen one or more existing hotels during the pendency of the Chapter 11 cases.

Wilmington Trust, NA is the administrative agent. The lenders are one or more funds managed by Monarch Alternative Capital LP.

The facility was set to mature on the earliest to occur of 12 months after the closing date, the effective date of a plan, five business days after the sale of substantially all of the DIP collateral, and the date the DIP agent or the date that all outstanding obligations are accelerated following an event of default.

Interest was set at Libor plus 675 basis points, subject to a 0.5% Libor floor.

Singapore-based Eagle Hospitality owns a portfolio of corporate, leisure and airport hotels across the United States. U.S. affiliate EHT US1 filed Chapter 11 bankruptcy on Jan. 18 under case number 21-10036.

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