Summit Hotel Properties, Inc. (INN): debt financing — Summit Hotel JV enters $200M credit facility ($125M revolver + $75M term loan) maturing 2027

Summit Hotel Properties, Inc.

Borrower is Summit JV MR 1, LLC, a joint venture of Summit Hotel OP and a GIC affiliate; Summit Hotel Properties (INN) is not a borrower or guarantor.
Facility includes $125M revolver and $75M term loan, both maturing Sept 15, 2027, with a single 12-month extension option.
Interest on revolver is SOFR + 2.15% (plus 0.10% SOFR adjustment) or base rate + 1.15%; term loan margin is 5 bps lower.
Key financial covenants: max leverage 55%, min fixed charge coverage 1.50x, min tangible net worth $284M + 75% of future equity proceeds, secured debt max 40% of asset value.
Accordion feature permits increasing total commitments by up to $300M, for potential aggregate borrowings of $500M.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Summit Hotel Properties, Inc. incurred credit facility of $200 million with Bank of America, N.A., as administrative agent, and BofA Securities, Inc., as sole lead arranger and sole bookrunner at Daily SOFR or Term SOFR (1-month or 3-month), plus a SOFR adjustment of 0.10%, p maturing September 15, 2027.

Instrument: credit facility
Principal: $200 million
Counterparty: Bank of America, N.A., as administrative agent, and BofA Securities, Inc., as sole lead arranger and sole bookrunner
Rate: Daily SOFR or Term SOFR (1-month or 3-month), plus a SOFR adjustment of 0.10%, p
Maturity: September 15, 2027
Event: incurrence

Exact text from the filing

On September 15, 2023, Summit JV MR 1, LLC (the “Borrower”, “we” or “us”), as borrower, Summit Hospitality JV, LP (the “Parent”), as parent, and each subsidiary of the Borrower executing the credit facility documentation as a guarantor, entered into a $200 million credit facility (the “Credit Facility”) with various initial lenders, Bank of America, N.A., as administrative agent, and BofA Securities, Inc., as sole lead arranger and sole bookrunner.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Summit Hotel Properties, Inc. entered into Credit Facility with various initial lenders, Bank of America, N.A., as administrative agent, and BofA Securities, Inc., as sole lead arranger and sole bookrunner valued at $200 million (effective 2023-09-15).

Action: entry
Agreement: credit facility
Counterparty: various initial lenders, Bank of America, N.A., as administrative agent, and BofA Securities, Inc., as sole lead arranger and sole bookrunner
Value: $200 million
Effective: 2023-09-15

Exact text from the filing

Summit JV MR 1, LLC (the “Borrower”, “we” or “us”), as borrower, Summit Hospitality JV, LP (the “Parent”), as parent, and each subsidiary of the Borrower executing the credit facility documentation as a guarantor, entered into a $200 million credit facility (the “Credit Facility”) with various initial lenders, Bank of America, N.A., as administrative agent, and BofA Securities, Inc., as sole lead arranger and sole bookrunner.

View on SEC.gov

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Summit Hotel Properties, Inc. filing history →

Source: SEC EDGAR

accession 0001497645-23-000034

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