Hotel real estate investment trust (REIT),
Chatham Lodging Trust
), disclosed the amendment of its credit facility. The move will
give the company more financial flexibility and scope to grow
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Chatham Lodging has amended the revolving credit facility amount
to $175 million from $105 million and the accordion feature that
will help in availing an additional $50 million up from the prior
amount of $10 million.
The maturity date has been extended to Oct 2016 and can further
be extended by another year. Moreover, the company can enjoy
unsecured incremental borrowings in place of fully-secured ones.
Notably, the amendment was accomplished on Dec 11, and the
company's outstanding amount on its credit facility currently
stands at $49 million.
For Chatham Lodging, the move is a strategic fit and gives the
company the opportunity to look for lucrative deals and finance
them efficiently. As a matter of fact, the company has already
closed high quality hotels acquisitions worth $260 million since
last December and further has an active buyout pipeline.
Barclays Capital of
), Regions Capital Markets, US Bank National Association of
), Credit Agricole Corporate and Investment Bank and UBS
) are the participating lenders for this credit line.
This hotel REIT, which has its focus set on investments in
upscale extended-stay hotels and premium branded select-service
hotels, owns interests in 77 hotels. This includes 25 hotels that
are wholly owned by the company and minority investment in two
joint ventures owning 52 hotels.
Chatham Lodging currently has a Zacks Rank #3 (Hold).