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Chatham Lodging Trust Pays off Mortgages with Proceeds from Term Loan
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Rhea-AI Summary
Chatham Lodging Trust (NYSE: CLDT) has announced the full repayment of three mortgages totaling $73.3 million, which had an average interest rate of 8.0%. This repayment was facilitated by a new term loan with a significantly lower interest rate of 6.1%. The loans were repaid for properties including Home2 Suites Woodland Hills and Residence Inn Tysons Corner. The company is set to draw $90 million from its unsecured term loan by late April. CFO Jeremy Wegner noted that this refinancing solidifies the balance sheet and reduces interest costs.
Positive
Successful repayment of $73.3 million in high-interest mortgages.
New term loan with interest rate reduced from 8.0% to 6.1%, improving financial position.
Refinancing strengthens balance sheet and lowers overall interest costs.
Negative
None.
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--
Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale extended-stay hotels and premium branded, select-service hotels, today announced that it has repaid in full three mortgages with outstanding principal of $73.3 million and a weighted average interest rate of 8.0 percent with proceeds from its newly issued term loan which currently carries an interest rate of 6.1 percent.
Loans repaid were the following (amounts in 000’s):
Property
Int. Rate
Balance
Home2 Suites Woodland Hills
11.0%
$39,331
Residence Inn Tysons Corner
4.49%
$19,634
Homewood Suites San Antonio
4.59%
$14,368
Total
$73,333
The Tysons and San Antonio loans were paid off at maturity, and the Woodland Hills loan was paid off early. Chatham has until late April to borrow funds under the unsecured term loan and intends to fully draw the $90 million within that time frame.
“With our recently completed unsecured revolving credit facility and term loan, we have the ability to smartly manage our maturing debt,” highlighted Jeremy Wegner, Chatham’s chief financial officer. “We are especially pleased to be able to refinance our high-rated Woodland Hills mortgage, further solidify our balance sheet and reduce our interest costs.”
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,914 rooms/suites in 16 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Chatham Lodging Trust, including those statements regarding acquisitions, capital expenditures, future operating results and the timing and composition of revenues, among others, and statements containing words such as “expects,” “believes” or “will,” which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results or performance to differ materially from those discussed in such statements. Additional risks are discussed in the company’s filings with the Securities and Exchange Commission.
Dennis Craven (Company)
Chief Operating Officer
(561) 227-1386
Source: Chatham Lodging Trust
FAQ
What are the details of Chatham Lodging Trust's mortgage repayments?
Chatham Lodging Trust repaid three mortgages totaling $73.3 million at an average interest rate of 8.0% using proceeds from a new term loan at a 6.1% interest rate.
Which properties were involved in Chatham Lodging Trust's mortgage repayments?
The properties involved in the mortgage repayments include Home2 Suites Woodland Hills, Residence Inn Tysons Corner, and Homewood Suites San Antonio.
What is the significance of the new term loan for Chatham Lodging Trust?
The new term loan allows Chatham to lower its interest costs and solidify its balance sheet by refinancing high-interest mortgages.
When does Chatham Lodging Trust plan to draw funds from its unsecured term loan?
Chatham Lodging Trust intends to fully draw $90 million from its unsecured term loan by late April.
