CHOICE HOTELS INTERNATIONAL INC /DE (CHH): debt financing — Choice Hotels enters $500M unsecured term loan due Dec 2024 with SOFR pricing

CHOICE HOTELS INTERNATIONAL INC /DE

$500M unsecured term loan; maturity Dec 16, 2024 with optional one-year extension subject to lender consent.
Interest at SOFR + 0.10% credit spread plus margin of 125–175 bps, or base rate plus 25–75 bps, based on debt rating.
Financial maintenance covenants: fixed charge coverage ratio ≥2.50x; total leverage ratio ≤4.50x (step-up to 5.50x for acquisitions).
Mandatory prepayments equal to 100% net cash proceeds from certain debt or equity issuances.
Proceeds for general corporate purposes including working capital.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 1.0

CHOICE HOTELS INTERNATIONAL INC /DE incurred term loan of $500 million with Wells Fargo Bank, National Association at SOFR (subject to a credit spread adjustment of 0.10% and a 0.00% floor) plus a m maturing December 16, 2024.

Instrument: term loan
Principal: $500 million
Counterparty: Wells Fargo Bank, National Association
Rate: SOFR (subject to a credit spread adjustment of 0.10% and a 0.00% floor) plus a m
Maturity: December 16, 2024
Event: incurrence

Exact text from the filing

On December 18, 2023, the Company entered into the Credit Agreement, which provides for a $500 million unsecured term loan (the “Term Loan”) with a scheduled maturity date of December 16, 2024, subject to an optional one-year extension that can be requested by the Company prior to the initial maturity date.

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Source: SEC EDGAR

accession 0001193125-23-297666

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