Pebblebrook Hotel Trust has extended approximately $357 million of its $460 million October 2024 maturity term loan to 2028. The company paid down approximately $157.6 million of existing term loans and unsecured private placement notes.
As a result of the refinancing, Pebblebrook has no meaningful debt maturities until October 2025. The company utilized cash on its balance sheet for the debt paydowns, which was generated from more than $330 million of property sales throughout 2023, all in accordance with its stated strategic capital allocation objectives.
Pricing on all the company’s term loans remained unchanged and is based on a pricing grid of 140 to 245 basis points over the applicable adjusted term SOFR.
“We appreciate and value our bank group’s continued strong support for our company with this debt refinancing,” said Raymond D. Martz, co-president/CFO, Pebblebrook Hotel Trust. “We will continue to utilize proceeds from additional property sales and operating cash flow to reduce our debt, enhance our liquidity, strengthen our balance sheet and create value through the repurchase of common and preferred shares at very significant discounts to the underlying private market value of the company’s properties.”
Pebblebrook paid down its October 2024 maturity term loan to $400 million from $460 million and extended the maturity of $357 million to January 2028. In addition, the company paid down its October 2025 maturity term loan to $410 million from $460 million, and paid down $47.6 million of its maturing private notes, leaving only approximately $43 million of debt maturing in late 2024. The company’s $650 million unsecured credit facility remains undrawn and fully available. Following these debt activities, the company has approximately $2.2 billion of outstanding debt and convertible notes at a weighted average interest rate of 4.6%. After taking swap agreements into account, approximately 75% of the company’s total outstanding debt and convertible notes effectively bear interest at fixed rates.
BofA Securities Inc. led the company’s term loan extension, serving as joint lead arranger and sole bookrunner. U.S. Bank National Association serves as the syndication agent. Capital One, National Association; PNC Capital Markets LLC; TD Bank, N.A.; Truist Securities, Inc.; and Wells Fargo Bank, National Association serve as documentation agents and joint lead arrangers. Raymond James Bank, Regions Bank and Sumitomo Mitsui Banking Corporation serve as senior managing agents.
