DIAMONDROCK HOSPITALITY COMPLETES $1.2 BILLION REFINANCING
DiamondRock Hospitality Company (NYSE: DRH) announced the successful refinancing of its primary unsecured credit facility, increasing it from $750 million to $1.2 billion. This includes a $400 million revolving credit facility, a $300 million term loan maturing in January 2026, and a $500 million term loan maturing in January 2028. The refinancing enhances balance sheet strength, providing liquidity over $600 million without near-term debt maturities. The proceeds will be used to repay existing loans, securing financial flexibility for future investments.
- Increased total credit facility from $750 million to $1.2 billion.
- Liquidity expected to exceed $600 million by year-end.
- No near-term debt maturities after loan repayments.
- None.
BETHESDA, Md., Sept. 28, 2022 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) today announced that it successfully refinanced its primary unsecured credit facility to further enhance the strength and flexibility of its balance sheet. The Company entered into an amendment and restatement of its existing
"Balance sheet flexibility and liquidity are essential to take advantage of capital allocation opportunities in this environment," stated Mark W. Brugger, President and Chief Executive Officer. "This financing achieved our objective of expanding investment capacity while enhancing DiamondRock's conservative balance sheet. We expect to end the year with liquidity in excess of
"We appreciate the support our lending partners provided to meaningfully upsize our corporate borrowings in this environment," stated Jeff Donnelly, Executive Vice President and Chief Financial Officer.
The Company utilized the proceeds from the term loans to repay the
The following table illustrates the Company's debt maturity schedule reflecting this financing and the payoffs described above.
2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | |
(in millions) | |||||||
Corporate Debt | |||||||
Unsecured Term Loans | - | - | - | - | $ 300.0 | - | $ 500.0 |
- | - | - | - | - | $ - | - | |
Total Corporate Debt | $ - | $ - | $ - | $ - | $ - | ||
Mortgage Debt | |||||||
Courtyard Manhattan/Midtown East | - | - | $ 76.6 | - | - | - | - |
Worthington Renaissance Fort Worth Hotel | - | - | - | $ 76.1 | - | - | - |
Hotel Clio | - | - | - | $ 57.8 | - | - | - |
Westin Boston Seaport District | - | - | - | $ 179.6 | - | - | - |
Total Mortgage Debt | $ - | $ - | $ 76.6 | $ - | $ - | $ - | |
Total Debt | $ - | $ - | $ 76.6 | $ - | |||
NOTE: The amounts above reflect debt balances as of September 30, 2022 and assumes the exercise of all extension options.
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 34 premium quality hotels with over 9,500 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; negative developments in national and local economic and business conditions, including but not limited to, rising inflation and interest rates, job loss or growth trends, an increase in unemployment or a decrease in corporate earnings and investment; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
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SOURCE DiamondRock Hospitality Company
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