This Day On The Street
Continue to site
ADVERTISEMENT
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 Closes $400 Million Senior Unsecured Credit Facility

Hersha Hospitality Trust (NYSE: HT) (the “Company”), owner of upscale hotels in urban gateway markets, today announced that it closed on a new $400 million senior unsecured credit facility (the “Facility”) that is expandable to $550 million. The credit facility consists of a $250 million senior unsecured revolving line of credit (the “Revolving Credit Facility”) and a $150 million senior unsecured term loan (the “Term Loan”). This new Facility replaces the Company’s $250 million senior secured revolving credit facility.

Concurrent with the closing of the Facility, the Company funded a $100 million tranche of the Term Loan at a fixed interest rate of 3.195% for four years. The Company anticipates funding the remaining $50 million tranche of the Term Loan prior to December 31, 2012. The Term Loan borrowings were used to pay off the existing balance on the secured revolving credit facility, pay off the balance on mortgage loans at six hotel properties, and for general corporate purposes.

“The overwhelming support of the banking community resulted in a significant oversubscription that allows us to eliminate our floor pricing and reduce our weighted average cost of debt, extends the term of the Facility and provides us access to the unsecured debt markets,” commented Ashish R. Parikh, Chief Financial Officer. “We appreciate the confidence shown by the 16 members of this bank group and the size and pricing of the new Facility further validates the embedded growth potential of our portfolio and the conservative balance sheet strategy we have undertaken.”

The Facility was arranged by Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Book Running Managers. Bank of America, N.A., Raymond James Bank, N.A., Manufacturers and Traders Trust Company and TD Bank, N.A. are acting as Co-Documentation Agents. BBVA Compass, Fifth Third Bank, Regions Bank and US Bank National Association are acting as Senior Managing Agents. Other lenders under the Facility include Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., UBS Loan Finance LLC, PNC Bank, The Provident Bank, and Beneficial Bank.

1 of 2

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs