Park Hotels & Resorts Inc. Completes Upsize of Revolving Credit Facility to $950 Million and Extends Maturity to 2026

Rhea-AI Summary

Park Hotels & Resorts announced the amendment and restatement of its existing $901 million revolving credit facility, increasing the total capacity to $950 million. The maturity has been extended from December 2023 to December 2026, with collateral release on certain unencumbered assets. The new facility allows for borrowings at an adjusted SOFR rate plus a margin of 1.45% to 2.75%. Park paid off a $78 million term loan with a $50 million drawdown. CEO Thomas J. Baltimore, Jr. expressed satisfaction with the bank group's support, ensuring $1.9 billion in liquidity amid market uncertainty.

Positive

• Increased revolving credit facility capacity to $950 million.
• Maturity extended to December 2026, providing financial flexibility.
• Reduced margin on borrowings from 1.50%-3.00% to 1.45%-2.75%.
• Maintained liquidity of $1.9 billion, supporting long-term strategies.

Negative

• None.

TYSONS, Va., Dec. 01, 2022 (GLOBE NEWSWIRE) -- Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced that it has successfully amended and restated its existing $901 million revolving credit facility to increase total capacity to $950 million, extend the maturity from December 2023 to December 2026, and release all collateral securing the credit facility (and its senior notes) consisting of pledges of equity interests in Park-affiliated entities owning certain unencumbered assets (as modified, the “Credit Facility”).  

In addition, the Credit Facility includes one or more extension options of up to one additional year in the aggregate, subject to customary extension conditions, and provides for borrowings to accrue interest at an adjusted SOFR rate plus a margin ranging from 1.45% to 2.75% (vs. previous range of 1.50% to 3.00%) depending on a ratio of Park’s adjusted total indebtedness to consolidated EBITDA. The Credit Facility also adjusts certain financial covenants to revised levels through the end of the first quarter of 2024 and allows for Park to conduct share repurchases, subject to compliance with the financial covenants. In connection with the closing of the Credit Facility, Park drew down $50 million which was used, together with cash on hand, to fully repay the remaining $78 million balance on its term loan facility which was set to mature in August 2024.

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, “We are extremely pleased with our bank group’s on-going support of Park, with oversubscribed commitments allowing us to upsize the Credit Facility. With the extension of our Credit Facility and the full repayment of our term loan, Park has maintained its $1.9 billion of liquidity and remains very well positioned, despite current market uncertainty, to pivot between offense and defense and execute on our long-term strategic goals.”     

The Company’s Credit Facility was jointly arranged by Wells Fargo Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., PNC Capital Markets LLC, and Truist Securities, Inc., with Wells Fargo Bank, N.A. acting as Administrative Agent, Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan Chase Bank, N.A. acting as Joint Bookrunners, and Bank of America, N.A. and JPMorgan Chase Bank, N.A. acting as Co-Syndication Agents. PNC Bank, National Association, Truist Bank, Morgan Stanley Senior Funding, Inc. and Goldman Sachs Bank USA, served as Co-Documentation Agents. PJT Partners acted as the Company’s financial advisor for the Credit Facility.

About Park Hotels & Resorts
Park is the second largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio currently consists of 47 premium-branded hotels and resorts with approximately 30,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information. 

For more information, contact:
Ian Weissman
Senior Vice President, Corporate Strategy
571-302-5591
iweissman@pkhotelsandresorts.com

For additional information or to receive press releases via e-mail, please visit our website at
www.pkhotelsandresorts.com 

FAQ

What is the latest update on Park Hotels & Resorts' credit facility?

Park Hotels & Resorts has amended its credit facility, increasing the capacity to $950 million and extending maturity to December 2026.

How has Park Hotels & Resorts improved its financial terms?

The company reduced the borrowing margin from 1.50%-3.00% to 1.45%-2.75% in its new credit facility.

What actions did Park take regarding its term loan?

Park Hotels & Resorts fully repaid its $78 million term loan using a $50 million drawdown from its credit facility.

What is Park Hotels & Resorts' liquidity status?

Park maintains $1.9 billion in liquidity, positioning itself well despite market uncertainties.