RLJ amends 2012 facility, exercises accordion on 2012, 2013 term loans

By Marisa Wong

Madison, Wis., March 25 - RLJ Lodging Trust and operating partnership RLJ Lodging Trust, LP entered into on March 20 an amendment to their amended and restated credit agreement dated Nov. 20, 2012 with Wells Fargo Bank, NA as administrative agent and a lender, according to an 8-K filing with the Securities and Exchange Commission.

The amended credit agreement provides for senior unsecured credit facilities consisting of a revolving credit facility of up to $300 million and a term loan with an original principal balance of $275 million.

The amendment extends the scheduled maturity date of the term loan to March 20, 2019 from Nov. 20, 2017 and reduces the interest rate of the term loan by 15 basis points. The term loan now bears interest at Libor plus 155 bps to 230 bps, depending on the company's total leverage ratio.

In addition, the amendment expands the facility's accordion feature, allowing RLJ to increase the total term loan amount to $600 million. Under the previous accordion, the total term loan amount could be increased to $400 million.

On the amendment date, RLJ entered into an additional term loan lender supplement with Wells Fargo, some existing lenders and some other lending institutions to exercise the amended accordion for a term loan increase of $125 million. The entire $125 million was fully drawn on March 20.

Proceeds of the draw were used to finance the repayment of existing debt.

Also on March 20, RLJ entered into an additional lender supplement with Wells Fargo and some existing lenders to exercise the accordion feature under its term loan agreement dated Aug. 27, 2013 for a term loan increase of $50 million.

The accordion feature of the 2013 facility gives RLJ the option to increase the total term loan amount to $400 million.

The entire $50 million was fully drawn on March 20. Proceeds were used to finance the repayment of existing debt.

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

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