Summit Hotel Properties, Inc. has announced that its joint venture with GIC, Singapore's sovereign wealth fund, has successfully completed the refinancing of its $200 million senior credit facility, which is comprised of a $125 million revolving credit facility and a $75 million term loan.
Executive vice president and chief financial officer, Trey Conkling, said that the company greatly appreciates the continued support from its lending partners and are extremely pleased with the credit facility refinancing for the joint venture.
"The transaction eliminates all of the Company's material debt maturities through 2024 and maintains attractive pricing, further strengthening our well-positioned balance sheet," said Conkling.
The new credit agreement has provided a fully extended maturity date of September 2028 for both the Revolver and Term Loan. The interest rate pricing from the prior credit facility has been maintained at SOFR+215 basis points for the $125 Million Revolver and SOFR+210 basis points for the $75 Million Term Loan. Other terms of the agreement are similar to the joint venture's previous credit facility agreement.
As a result of this refinancing, the Company has no material debt maturities through 2024, and its average length to maturity is over three years, including extension options. Approximately 80 percent of the Company's pro rata debt and preferred equity capital has a fixed interest rate after giving effect to interest rate derivative agreements.
