Summit Hotel obtains $92 million secured loan from KeyBank, Regions

By Marisa Wong

Madison, Wis., May 30 - Summit Hotel Properties, Inc.'s operating partnership, Summit Hotel OP, LP, entered into a $92 million senior secured interim loan with KeyBank NA as administrative agent and lender and Regions Bank as lender on May 23, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The loan has an initial maturity of six months but may be extended for an additional six months.

Borrowings will bear interest at one-, two-, three- or six-month Libor plus 225 basis points.

The loan may be repaid in whole or in part from time to time without penalty or premium.

In addition, the company is required to maintain a trailing 12-month adjusted net operating income of at least $9.3 million on its White Lodging Portfolio.

Upon completing the interim loan, Summit Hotel also entered into a fourth amendment to its credit agreement dated April 29, 2011, which provides a $150 million senior security revolving credit facility.

With the amendment, the company increased the concentration of borrowing base assets in any metropolitan statistical area to 30% from 20% to permit the addition of the company's Courtyard by Marriott and Springhill Suites hotels in New Orleans to the borrowing base of the credit facility.

The company also added some provisions to the existing credit agreement so that the interim loan does not violate the facility's indebtedness or lien covenants.

Summit is a real estate investment trust focused on premium-branded select-service hotels. It is based in Sioux Falls, S.D.

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