LaSalle Hotel gets expanded $750 million facility for asset purchase

By Susanna Moon

Chicago, Dec. 14 - LaSalle Hotel Properties said it obtained a $750 million senior unsecured credit facility due Jan. 30, 2017 to replace its $450 million facility set to mature in April.

LaSalle Hotel Lessee, Inc., the company's taxable real estate investment trust subsidiary, refinanced its $25 million revolver with U.S. Bank NA, with no change in capacity, on similar terms as the credit facility, according to a company press release.

The facility includes an accordion that allows for total commitments of up to $1 billion.

Interest on the loans will be Libor plus 175 basis points to 270 bps, based on leverage.

Citigroup Global Markets Inc., RBS Securities Inc. and BMO Capital Markets are the lead arrangers and bookrunners.

The company said it plans to use proceeds from the facility to help close on its purchase of the Park Central Hotel between Dec. 20 and Jan. 10. Funding for the Park Central acquisition also will come from cash on hand and issuance of about $8 million of operating partnership units.

LaSalle, a Bethesda, Md.-based multi-operator real estate investment trust, owns upscale full-service hotels.

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