SUMMIT HOTEL PROPERTIES COMPLETES $275 MILLION DELAYED DRAW TERM LOAN FINANCING
Rhea-AI Summary
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.
Positive
- 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
Negative
- Taking on new debt to repay existing convertible notes
- Higher interest rate on new term loan (SOFR + 190bps) compared to existing 1.50% notes
News Market Reaction
On the day this news was published, INN gained 0.55%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"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
View original content to download multimedia:https://www.prnewswire.com/news-releases/summit-hotel-properties-completes-275-million-delayed-draw-term-loan-financing-302415977.html
SOURCE Summit Hotel Properties, Inc.
FAQ
What is the size and purpose of Summit Hotel Properties' (INN) new term loan?
When does Summit Hotel Properties' (INN) new term loan mature?
What is the interest rate structure for INN's new term loan?
How does this refinancing affect INN's debt maturity profile?
What is Summit Hotel Properties' (INN) current liquidity position after the term loan?
