Summit Hotel amends credit agreement for revolver, term loans

By Taylor Fox

New York, Feb. 8 – Summit Hotel Properties, Inc. amended the credit agreement for its $400 million revolving credit facility and three senior term loans totaling $550 million, according to a news release.

The transactions were amended to enhance overall flexibility and extend the financial covenant waiver period.

The amendments include a waiver of key financial covenants through March 31, 2022, full availability of $400 million revolver, subject to certain conditions, which is an increase of $20 million compared to the previous amendment. The $400 million revolver currently has an outstanding balance of $10 million. Combined with current cash of $25 million, the company has more than $400 million of total liquidity.

The amendments also provide the ability to fund up to $150 million of new investments with existing liquidity subject to maintaining total liquidity of at least $150 million, continuation of the company's ability to make preferred distributions and invest in various capital improvement projects and flexibility to use net proceeds from future capital events to repay outstanding balances on the revolving credit facility first and subsequently reduce certain term loan balances to preserve future liquidity.

Summit Hotel Properties is an Austin, Tex.-based real estate investment trust focused on hotels for middle and upscale markets.

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