This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hersha Hospitality Trust Announces New Senior Unsecured Credit Facility Of $400 Million Expandable To $550 Million

Hersha Hospitality Trust (NYSE: HT) (the “Company”), owner of upscale hotels in urban gateway markets, today announced that its operating partnership, Hersha Hospitality Limited Partnership (the “Borrower”), has received commitments for a new $400 million senior unsecured credit facility that is expandable to $550 million at the Borrower’s request (the “Facility”). The Facility will consist of a senior unsecured revolving line of credit (the “Revolving Credit Facility”) in an initial amount of $250 million and a senior unsecured term loan (the “Term Loan”) in a principal amount of up to $150 million. The Facility will replace the Company’s $250 million senior secured revolving credit facility. It is expected to close, subject to the satisfaction of customary closing conditions, within the next 30 days.

The Revolving Credit Facility will be unsecured and will mature three years from the closing date. The Borrower will have the right to extend the lenders’ commitments under the Revolving Credit Facility for an additional one-year period, subject to the satisfaction of certain conditions. The interest rate for the new credit Facility will be based on a pricing grid with a range of 175 to 265 basis points over LIBOR, based on the Company’s leverage ratio for an all-in rate, inclusive of swaps, of 2.60% to 3.50%.

“We are encouraged by our ability to access the debt capital markets and the support of our bank group. The new Facility will meaningfully strengthen our balance sheet and provide us with greater financial flexibility,” commented Ashish R. Parikh, Chief Financial Officer. “This transaction will significantly reduce our weighted average cost of debt and enhance our liquidity position by over half a billion dollars. By eliminating the floor pricing on our existing secured credit facility and refinancing existing mortgage debt with the new Term Loan, we estimate a reduction of interest expense of approximately $2.5 million on an annual basis. Furthermore, our access to unsecured debt financing will reduce our reliance on the secured debt markets, further validating the quality of our portfolio and the conservative balance sheet strategy we have undertaken.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.69 -0.59%
FB $119.49 1.43%
GOOG $711.11 1.40%
TSLA $214.93 1.61%
YHOO $37.23 0.79%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs