Summit Hotel draws $125 million under its $400 million revolver

By Sarah Lizee

Olympia, Wash., March 26 – Summit Hotel Properties, Inc. drew $125 million under its $400 million senior unsecured revolving credit facility on March 19, according to an 8-K filing with the Securities and Exchange Commission.

The draw was made as a precautionary measure in order to increase the company’s cash position and preserve financial flexibility in light of current uncertainty resulting from, and the adverse effects on operations of, the novel coronavirus and related respiratory disease pandemic, the company said.

As of March 23, the principal amount outstanding under the revolver was about $220 million. The current interest rate for borrowings is Libor plus 175 basis points based on the company’s current leverage ratio, or about 2.68% as of March 23.

The revolver is part of a $600 million credit agreement that also includes a $200 million term loan.

Summit Hotel is an Austin, Tex.-based real estate investment trust.

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