RLJ Lodging secures financial covenant waivers on credit agreements

Chicago, June 25 – RLJ Lodging Trust announced that it has amended its $1.8 billion senior credit facilities, according to a press release on Thursday.

The facility is comprised of a $600 million revolver and $1,175,000,000 in term loans.

Specifically, the amendments include:

• A waiver of quarterly financial covenants from the second quarter of 2020 through the first quarter of 2021;

• After the end of the covenant relief period, calculations are modified to make compliance easier through the second quarter of 2022;

• Restrictions on share repurchases, dividends and distribution payments, with some exceptions including the company’s dividend on its series A cumulative convertible preferred shares, necessary for maintaining the company’s REIT status;

• Limitations on the company’s ability to incur further debt; and

• Allowance for investments, including $200 million of acquisitions, depending on the outstanding balance of the revolver, and approximately $260 million of capital expenditures.

RLJ Lodging is a Bethesda, Md.-based real estate investment trust focused on acquiring hotels.

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