Pebblebrook amends loans for covenant waivers, maturity extensions

By Sarah Lizee

Olympia, Wash., July 1 – Pebblebrook Hotel Trust amended the agreements governing its outstanding debt, including its $650 million senior unsecured revolver and $2 billion of term loans and working capital facilities, according to a press release.

In addition, $242.6 million of the company’s $300 million November 2021 debt maturity was extended to November 2022.

As amended, the company’s credit agreements and related documents waive existing financial covenants through the end of the first quarter of 2021 and provide substantially less restrictive covenants through the end of the second quarter of 2022.

The amended agreements provide for continued ability to pay quarterly preferred equity dividend payments and a $0.01 per share quarterly common dividend or higher if required to maintain REIT status during the waiver period as long as the company is in compliance with all loan agreements.

They also provide for flexibility to complete new acquisitions and other investments during the waiver period as well as the ability to complete up to $90 million of capital improvements and redevelopment projects through the end of the waiver period.

There are limitations during the waiver period on common share repurchases and some required prepayments following capital issuances or property dispositions.

All of the company’s outstanding debt remains unsecured.

Pebblebrook is a Bethesda, Md.-based real estate investment trust and owner of urban and resort lifestyle hotels.

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