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Xenia Hotels & Resorts Announces Proposed Offering of Senior Notes

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Xenia Hotels & Resorts (NYSE: XHR) announced that its operating partnership, XHR LP, plans to offer $365 million in senior notes due 2030. The proceeds, combined with borrowings under the company's amended credit agreement from November 4, 2024, will be used to fully redeem outstanding 6.375% senior notes due 2025. The new notes will be senior obligations of XHR LP and guaranteed by Xenia and certain subsidiaries. The offering is to qualified institutional buyers and non-U.S. persons in offshore transactions. Xenia currently owns 31 hotels comprising 9,408 rooms across 14 states.

Xenia Hotels & Resorts (NYSE: XHR) ha annunciato che la sua partnership operativa, XHR LP, prevede di offrire 365 milioni di dollari in note senior con scadenza nel 2030. I proventi, combinati con i prestiti secondo l'accordo di credito modificato della società del 4 novembre 2024, saranno utilizzati per il rimborso totale delle note senior 6,375% in scadenza nel 2025. Le nuove note saranno obbligazioni senior di XHR LP e garantite da Xenia e da alcune sue sussidiarie. L'offerta è rivolta a compratori istituzionali qualificati e a persone non statunitensi in transazioni offshore. Attualmente, Xenia possiede 31 hotel che comprendono 9.408 camere in 14 stati.

Xenia Hotels & Resorts (NYSE: XHR) anunció que su sociedad operativa, XHR LP, planea ofrecer 365 millones de dólares en notas senior con vencimiento en 2030. Los ingresos, combinados con préstamos bajo el acuerdo de crédito modificado de la compañía del 4 de noviembre de 2024, se utilizarán para redimir completamente las notas senior del 6.375% con vencimiento en 2025. Las nuevas notas serán obligaciones senior de XHR LP y estarán garantizadas por Xenia y ciertas subsidiarias. La oferta está destinada a compradores institucionales calificados y personas no estadounidenses en transacciones offshore. Actualmente, Xenia posee 31 hoteles que comprenden 9,408 habitaciones en 14 estados.

Xenia Hotels & Resorts (NYSE: XHR)는 운영 파트너십인 XHR LP가 2030년에 만기가 도래하는 3억 6,500만 달러 규모의 시니어 노트를 제공할 계획이라고 발표했습니다. 수익금은 2024년 11월 4일에 개정된 회사의 신용 계약에 따른 차입금과 결합되어 2025년에 만기가 도래하는 6.375% 시니어 노트를 완전히 상환하는 데 사용될 것입니다. 새로운 노트는 XHR LP의 시니어 채무가 되며 Xenia와 특정 자회사에 의해 보증될 것입니다. 이 제공은 자격 있는 기관 투자자 및 비미국인 개인을 위한 해외 거래에 해당합니다. 현재 Xenia는 14개 주에 걸쳐 9,408개의 객실을 포함하는 31개 호텔을 운영하고 있습니다.

Xenia Hotels & Resorts (NYSE: XHR) a annoncé que son partenariat opérationnel, XHR LP, prévoit d'offrir 365 millions de dollars en obligations senior arrivant à échéance en 2030. Les produits, combinés aux emprunts dans le cadre de l'accord de crédit modifié de l'entreprise du 4 novembre 2024, seront utilisés pour racheter intégralement les obligations seniors de 6,375% arrivant à maturité en 2025. Les nouvelles obligations seront des engagements seniors de XHR LP et seront garanties par Xenia et certaines filiales. L'offre est destinée aux acheteurs institutionnels qualifiés et aux personnes non américaines dans des transactions offshore. Actuellement, Xenia possède 31 hôtels comprenant 9 408 chambres réparties dans 14 États.

Xenia Hotels & Resorts (NYSE: XHR) hat bekannt gegeben, dass ihre Betriebspartnerschaft, XHR LP, plant, 365 Millionen Dollar an Senior-Anleihen mit Fälligkeit im Jahr 2030 anzubieten. Die Erlöse werden zusammen mit den Darlehen gemäß der geänderten Kreditvereinbarung des Unternehmens vom 4. November 2024 verwendet, um die ausstehenden 6,375% Senior-Anleihen mit Fälligkeit im Jahr 2025 vollständig einzulösen. Die neuen Anleihen werden senior verpflichtet von XHR LP und durch Xenia sowie bestimmte Tochtergesellschaften garantiert. Die Ausgabe richtet sich an qualifizierte institutionelle Käufer und Nicht-US-Personen in Offshore-Transaktionen. Xenia besitzt derzeit 31 Hotels mit insgesamt 9.408 Zimmern in 14 Bundesstaaten.

Positive
  • Refinancing of existing debt with potentially better terms
  • Strong asset portfolio with 31 luxury and upper upscale hotels
  • Strategic partnerships with major hotel operators like Marriott, Hyatt, and Hilton
Negative
  • Taking on new debt of $365 million
  • Additional borrowings required from credit agreement to complete refinancing

Insights

This debt refinancing initiative signals a strategic financial move. The company aims to replace its existing $365 million of 6.375% senior notes due 2025 with new notes due 2030, effectively extending their debt maturity profile. The current interest rate environment makes this an opportune time for refinancing, potentially securing more favorable terms.

The refinancing through Rule 144A offering targets qualified institutional buyers, indicating a sophisticated debt structure. This approach typically offers more flexible terms compared to registered public offerings. The combination of new notes and credit facility borrowings suggests a comprehensive liability management strategy, though the ultimate impact will depend on the new interest rate secured.

Xenia's portfolio of 31 luxury and upper-upscale hotels across 14 states, managed by premium brands like Marriott and Hyatt, provides strong underlying asset quality to support this debt offering. The focus on top 25 lodging markets and key leisure destinations positions them well in the current hospitality market environment.

The refinancing indicates proactive balance sheet management, addressing near-term maturities well ahead of their 2025 due date. This move provides enhanced financial flexibility and demonstrates management's forward-thinking approach to capital structure optimization, though the true value will depend on the new notes' pricing terms.

ORLANDO, Fla., Nov. 12, 2024 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced that its operating partnership, XHR LP (the "Issuer"), intends to offer, subject to market conditions and other factors, $365 million aggregate principal amount of senior notes due 2030 (the "Notes"). The Notes will be senior obligations of the Issuer and will be fully and unconditionally guaranteed by the Company and certain of the Issuer's subsidiaries that incur or guarantee the credit facilities or certain other indebtedness of the Issuer. The Issuer intends to use the net proceeds of the offering, together with borrowings under the Company's amended and restated credit agreement, dated November 4, 2024 (the "Credit Agreement"), to redeem in full its outstanding 6.375% senior notes due 2025 and to pay certain fees and expenses in connection with, or otherwise related to, the offering of the Notes and the use of proceeds therefrom and from the Credit Agreement.

The Notes and the related guarantees have not been, and will not be, registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), any state securities laws or the securities laws of any other jurisdiction. The Notes may not be offered or sold in the United States absent registration or pursuant to an exemption from, or in a transaction not subject to, registration. The Notes will be offered and sold only to persons reasonably believed to be "qualified institutional buyers" in accordance with Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities. In addition, this press release will not constitute a notice of redemption with respect to the 6.375% senior notes due 2025 or an offer to purchase or the solicitation of an offer to buy the 6.375% senior notes due 2025.

About Xenia Hotels & Resorts, Inc.
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 lodging markets as well as key leisure destinations in the United States. The Company owns 31 hotels and resorts, comprising 9,408 rooms across 14 states. Xenia's hotels are primarily operated and/or licensed by industry leaders such as Marriott, Hyatt, Fairmont, Kimpton, Loews, Hilton and The Kessler Collection.

This press release contains statements as to the Company's beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements are generally identifiable by use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "illustrative," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include, among others, statements about our plans, strategies, or other future events. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) general economic uncertainty and a contraction in the U.S. or global economy or low levels of economic growth; (ii) macroeconomic and other factors beyond our control that can adversely affect and reduce demand for hotel rooms, food and beverage services, and/or meeting facilities, such as wars, global conflicts and geopolitical unrest, other political conditions or uncertainties, actual or threatened terrorist or cyber-attacks, mass casualty events, government shutdowns and closures, travel-related health concerns, global outbreaks of pandemics (such as the COVID-19 pandemic) or contagious diseases, or fear of such outbreaks, weather and climate-related events, such as hurricanes, tornadoes, floods, wildfires, and droughts, and natural or man-made disasters; (iii) inflation and inflationary pressures which increases labor costs and other costs of providing services to guests and complying with hotel brand standards, as well as costs related to construction and other capital expenditures, property and other taxes, and insurance costs which could result in reduced operating profit margins; (iv) bank failures and concerns over a potential domestic and/or global recession; (v) the Company's dependence on third-party managers of its hotels, including its inability to implement strategic business decisions directly; (vi) risks associated with the hotel industry, including competition, increases in wages and benefits, energy costs and other operating costs, cyber incidents, information technology failures, downturns in general and local economic conditions, prolonged periods of civil unrest in our markets, and disruption caused by cancellation of or delays in the completion of anticipated demand generators; (vii) the availability and terms of financing and capital and the general volatility of securities markets; (viii) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws; (ix) interest rate increases; (x) ability to successfully negotiate amendments and covenant waivers with its unsecured and secured indebtedness; (xi) the Company's ability to comply with covenants, restrictions, and limitations in any existing or revised loan agreements with our unsecured and secured lenders; (xii) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs; (xiii) the possibility of uninsured or underinsured losses, including those relating to natural disasters, terrorism, government shutdowns and closures, civil unrest, or cyber incidents; (xiv) risks associated with redevelopment and repositioning projects, including disruption, delays and cost overruns; (xv) levels of spending in business and leisure segments as well as consumer confidence; (xvi) declines in occupancy and average daily rate; (xvii) the seasonal and cyclical nature of the real estate and hospitality businesses; (xviii) changes in distribution arrangements, such as through Internet travel intermediaries; (xix) relationships with labor unions and changes in labor laws, including increases to minimum wages and/or work rule requirements; (xx) the impact of changes in the tax code and uncertainty as to how some of those changes may be applied; (xxi) monthly cash expenditures and the uncertainty around predictions; (xxii) labor shortages; (xxiii) disruptions in supply chains resulting in delays or inability to procure required products; and (xxiv) the risk factors discussed in the Company's Annual Report on Form 10-K, as updated in its Quarterly Reports. Accordingly, there is no assurance that the Company's expectations will be realized. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. 

For further information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company's website at www.xeniareit.com.

All information in this press release is as of the date of its release. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company's expectations.

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SOURCE Xenia Hotels & Resorts, Inc.

FAQ

What is the size of Xenia Hotels & Resorts' (XHR) new senior notes offering?

Xenia Hotels & Resorts announced a proposed offering of $365 million in senior notes due 2030.

How will XHR use the proceeds from the 2030 senior notes offering?

The proceeds will be used to redeem the outstanding 6.375% senior notes due 2025 and pay related fees and expenses.

How many hotels does Xenia Hotels & Resorts (XHR) currently own?

Xenia Hotels & Resorts owns 31 hotels and resorts, comprising 9,408 rooms across 14 states.

What is the maturity date of XHR's new proposed senior notes?

The proposed senior notes will be due in 2030.

Xenia Hotels & Resorts, Inc.

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