Summit Hotel Properties refinances $600 million facility, extends to 2028

By Mary-Katherine Stinson

Lexington, Ky., June 22 – Summit Hotel Properties, Inc. completed the refinancing of its $600 million senior credit facility, according to a press release.

The facility is made up of a $400 million senior revolving credit facility and a $200 million senior term loan.

The amended and restated credit agreement extended the maturity date to June 2028, including extension options, for both the revolver and the term loan.

The pricing grid was unchanged from the previous facility at SOFR plus margins ranging from 140 to 240 basis points for the revolver and 135 to 235 bps for the term loan.

Other terms are similar to the company’s previous agreement.

BofA Securities, Inc., Wells Fargo Securities, LLC, JPMorgan Chase Bank, NA, Regions Capital Markets, and U.S. Bank NA are the joint bookrunners and joint lead arrangers. Additional joint lead arrangers were Capital One, NA, Bank of Nova Scotia and Truist Securities, Inc.

Royal Bank of Canada and Raymond James Bank are listed as participants in the credit facility.

Bank of America, NA is the administrative agent, and Wells Fargo Bank, NA, Regions Bank, JPMorgan Chase Bank, NA, and U.S. Bank NA are the co-syndication agents.

As a result of the refinancing, the company’s average length to maturity has been pushed out to over three years, with no more than 25% of the company’s pro rata outstanding debt maturing in any single year.

Currently, the company reports having nearly $450 million of pro rata total liquidity and approximately 80% of pro rata fixed-interest rate debt and preferred equity capital after interest rate derivative agreements become effective.

Summit is an Austin, Tex.-based real estate investment trust focused on hotels.

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