SUMMIT HOTEL PROPERTIES COMPLETES $275 MILLION DELAYED DRAW TERM LOAN FINANCING
Summit Hotel Properties (NYSE: INN) has secured a new $275 million senior unsecured term loan with a maturity date of March 2030, including two one-year extension options. The loan will primarily be used to repay the company's outstanding $287.5 million 1.50% Convertible Senior Notes due in February 2026.
The Term Loan features a delayed draw option through March 1, 2026, allowing the company to maintain the 1.50% interest rate on existing notes. Pricing ranges from 135 to 235 basis points over adjusted Term SOFR rate, with initial pricing at SOFR plus 190 basis points. An accordion feature allows for up to $50 million in additional commitments.
Following this refinancing, Summit's average debt maturity extends to nearly four years, with no significant debt maturities until 2027. The company maintains approximately $320 million of pro rata total liquidity and roughly 77% pro rata fixed interest rate debt and preferred equity capital.
Summit Hotel Properties (NYSE: INN) ha ottenuto un nuovo prestito senior non garantito di 275 milioni di dollari con scadenza a marzo 2030, comprensivo di due opzioni di estensione di un anno. Il prestito sarà utilizzato principalmente per rimborsare i convertibili senior notes in circolazione dell'azienda, pari a 287,5 milioni di dollari con un tasso del 1,50%, in scadenza a febbraio 2026.
Il prestito a termine prevede un'opzione di prelievo ritardato fino al 1 marzo 2026, consentendo all'azienda di mantenere il tasso di interesse del 1,50% sui titoli esistenti. I prezzi variano da 135 a 235 punti base sopra il tasso SOFR rettificato, con un prezzo iniziale di SOFR più 190 punti base. Una caratteristica di accordion consente impegni aggiuntivi fino a 50 milioni di dollari.
Dopo questo rifinanziamento, la scadenza media del debito di Summit si estende a quasi quattro anni, senza scadenze significative fino al 2027. L'azienda mantiene circa 320 milioni di dollari di liquidità totale pro rata e circa 77% di debito a tasso fisso pro rata e capitale di equity preferenziale.
Summit Hotel Properties (NYSE: INN) ha conseguido un nuevo préstamo a plazo senior no garantizado de 275 millones de dólares con fecha de vencimiento en marzo de 2030, que incluye dos opciones de extensión de un año. El préstamo se utilizará principalmente para reembolsar las notas senior convertibles pendientes de la compañía, que ascienden a 287,5 millones de dólares con un interés del 1,50%, con vencimiento en febrero de 2026.
El préstamo a plazo cuenta con una opción de retiro diferido hasta el 1 de marzo de 2026, permitiendo a la compañía mantener la tasa de interés del 1,50% en las notas existentes. Los precios oscilan entre 135 y 235 puntos básicos sobre la tasa SOFR ajustada, con un precio inicial de SOFR más 190 puntos básicos. Una característica de accordion permite compromisos adicionales de hasta 50 millones de dólares.
Tras este refinanciamiento, el vencimiento promedio de la deuda de Summit se extiende a casi cuatro años, sin vencimientos significativos hasta 2027. La compañía mantiene aproximadamente 320 millones de dólares de liquidez total pro rata y alrededor de 77% de deuda a tasa fija pro rata y capital preferente.
서밋 호텔 프로퍼티스 (NYSE: INN)는 만기일이 2030년 3월인 2억 7500만 달러의 비담보 선순위 대출을 확보했습니다. 이 대출은 1년 연장 옵션이 두 개 포함되어 있습니다. 대출금은 주로 2026년 2월 만기인 287.5백만 달러의 1.50% 전환 선순위 노트를 상환하는 데 사용될 것입니다.
이 대출은 2026년 3월 1일까지 연기된 인출 옵션을 제공하여 회사가 기존 노트에 대해 1.50%의 이자율을 유지할 수 있도록 합니다. 가격은 조정된 SOFR 금리에 대해 135에서 235 베이시스 포인트 범위이며, 초기 가격은 SOFR에 190 베이시스 포인트가 추가된 것입니다. 아코디언 기능은 최대 5천만 달러의 추가 약정을 허용합니다.
이 재융자 이후 서밋의 평균 부채 만기는 거의 4년으로 연장되며, 2027년까지 중요한 부채 만기가 없습니다. 회사는 약 3억 2천만 달러의 비례 총 유동성과 대략 77%의 비례 고정 이자율 부채 및 우선주 자본을 유지하고 있습니다.
Summit Hotel Properties (NYSE: INN) a obtenu un nouveau prêt senior non garanti de 275 millions de dollars avec une date d'échéance en mars 2030, incluant deux options d'extension d'un an. Le prêt sera principalement utilisé pour rembourser les notes senior convertibles en circulation de l'entreprise, qui s'élèvent à 287,5 millions de dollars avec un taux de 1,50%, arrivant à échéance en février 2026.
Le prêt à terme comprend une option de tirage différé jusqu'au 1er mars 2026, permettant à l'entreprise de maintenir le taux d'intérêt de 1,50% sur les titres existants. Les prix varient de 135 à 235 points de base au-dessus du taux SOFR ajusté, avec un prix initial de SOFR plus 190 points de base. Une fonctionnalité d'accordéon permet des engagements supplémentaires allant jusqu'à 50 millions de dollars.
Suite à ce refinancement, la maturité moyenne de la dette de Summit s'étend à près de quatre ans, sans échéances significatives avant 2027. L'entreprise maintient environ 320 millions de dollars de liquidité totale au prorata et environ 77% de dettes à taux fixe au prorata ainsi que du capital d'actions privilégiées.
Summit Hotel Properties (NYSE: INN) hat ein neues 275 Millionen Dollar Senior Unsecured Term Loan mit einer Fälligkeit im März 2030 gesichert, einschließlich zweier einjähriger Verlängerungsoptionen. Das Darlehen wird hauptsächlich verwendet, um die ausstehenden 287,5 Millionen Dollar 1,50% wandelbaren Senior Notes zurückzuzahlen, die im Februar 2026 fällig werden.
Das Term Loan bietet eine verzögerte Abrufoption bis zum 1. März 2026, die es dem Unternehmen ermöglicht, den Zinssatz von 1,50% auf bestehende Anleihen beizubehalten. Die Preisgestaltung liegt zwischen 135 und 235 Basispunkten über dem angepassten Term SOFR-Zins, mit einem anfänglichen Preis von SOFR plus 190 Basispunkten. Eine Accordion-Funktion ermöglicht zusätzliche Verpflichtungen von bis zu 50 Millionen Dollar.
Nach dieser Refinanzierung verlängert sich die durchschnittliche Fälligkeit der Schulden von Summit auf fast vier Jahre, ohne nennenswerte Schuldenfälligkeiten bis 2027. Das Unternehmen hält etwa 320 Millionen Dollar an proportionaler Gesamtl Liquidität und ungefähr 77% proportionalen Festzins-Schulden sowie Vorzugsaktienkapital.
- Secured $275 million term loan with favorable terms and extension options
- Maintains low 1.50% interest rate on existing notes through delayed draw feature
- Extended average debt maturity to nearly four years
- No significant debt maturities until 2027
- Strong liquidity position with $320 million pro rata total liquidity
- 77% of debt and preferred equity capital is fixed-rate, reducing interest rate risk
- Taking on new debt to repay existing convertible notes
- Higher interest rate on new term loan (SOFR + 190bps) compared to existing 1.50% notes
Insights
Summit Hotel Properties' $275 million term loan represents a strategic balance sheet enhancement that effectively addresses their upcoming debt maturities while optimizing their capital structure. The key brilliance here is the delayed draw feature that allows them to maintain their favorable
The pricing terms (SOFR +
Most impressive is how this transaction strengthens Summit's defensive positioning:
The impressive banking syndicate (BofA, Wells Fargo, Capital One, etc.) signals strong institutional confidence in Summit's financial foundation. This refinancing represents textbook liability management - preserving low-cost debt while extending maturities and maintaining financial flexibility, all without diluting shareholders.
"We greatly appreciate the continued support of our lending partners and are extremely pleased with the successful execution of this term loan financing. This term loan enables us to maintain the favorable interest rate of the
The Term Loan provides for a maturity date of March 2030, including two, one-year extension options. The pricing grid of the Term Loan ranges from 135 to 235 basis points over the applicable adjusted Term SOFR rate, with expected initial pricing of SOFR plus 190 basis points. The Term Loan includes an accordion feature that allows the Company to increase commitments by up to
As a result of this refinancing, the Company's average length to maturity will increase to nearly four years on a pro forma basis, including extension options, and the Company has no significant debt maturities until 2027. Additionally, the Company currently has approximately
The transaction included Bank of America, N.A., as administrative agent, Wells Fargo Bank, N.A., as syndication agent, Capital One, National Association, Huntington National Bank, JPMorgan Chase Bank, N.A., Truist Securities, Inc.,
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the Upscale segment of the lodging industry. As of March 31, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,554 guestrooms located in 25 states.
For additional information, please visit the Company's website, www.shpreit.com, and follow the Company on Twitter at @SummitHotel_INN.
Forward Looking Statements
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "forecast," "project," "potential," "continue," "likely," "will," "would" "commit," "target," or similar words or expressions. as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "forecast," "project," "potential," "continue," "likely," "will," "would" "commit," "target," or similar words or expressions.Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the
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SOURCE Summit Hotel Properties, Inc.
FAQ
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