Hersha Hospitality obtains five-year $300 million unsecured term loan

By Wendy Van Sickle

Columbus, Ohio, Aug. 11 – Hersha Hospitality Trust closed on a five-year $300 million senior unsecured term loan, according to a Tuesday press release.

The term loan’s interest rate ranges from Libor plus 150 basis points to 225 bps, based on the company’s leverage ratio.

Citigroup Global Markets, Inc. and Wells Fargo Securities, LLC acted as joint lead arrangers and joint bookrunners on the loan. Bank of America, NA, Manufacturers and Traders Trust Co., Raymond James Bank, NA, TD Bank, NA, PNC Bank, NA and Fifth Third Bank acted as co-documentation agents.

At closing, Hersha drew $210 million of the loan. The remaining $90 million will be available in one or more advances on a delayed-draw basis for up to 360 days.

The company said it will use proceeds to refinance existing debt, as well as for general corporate purposes, potential acquisitions and capital expenditures.

The company also has an existing $500 million senior unsecured credit facility, consisting of a $250 $800 million.

Harrisburg, Pa.-based Hersha owns and operates upscale hotels in urban markets in the United States.

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