Pebblebrook Hotel Trust has successfully originated a $1.75 billion term loan. The new term Loan provides funding needed for the company’s previously announced pending merger with LaSalle Hotel Properties, which includes paying off LaSalle’s current outstanding debt balances and other transaction closing costs.
The term Loan’s terms, pricing and covenants are substantially the same as those for the company’s current outstanding term loans. The term loan is allocated into five individual tranches, maturing between 2020 and 2024, each of which is prepayable without penalty. The financing will only be funded when the company’s pending merger with LaSalle is completed, which is targeted for November 30, 2018 and is subject to approvals of shareholders of both companies.
“We are incredibly appreciative of the strong support from our bank group on this significant financing effort as our company enters this transformative period,” commented Raymond D. Martz, Chief Financial Officer for Pebblebrook Hotel Trust. “We are excited to welcome several new financing partners who have joined our bank group as part of this financing effort. We are thrilled to announce that we are one step closer to finalizing our merger with LaSalle which remains on track to close on November 30.”
The Company’s $1.75 billion Term Loan matures in five individual tranches between 2020 and 2024 and is led by Merrill Lynch, Pierce, Fenner & Smith Incorporated, U.S. Bank National Association and Wells Fargo Securities, each of which serve as Joint Bookrunner and Joint Lead Arranger. PNC Capital Markets LLC, BMO Capital Markets, SunTrust Robinson Humphrey, Inc., The Bank of Nova Scotia and Compass Bank serve as Joint Lead Arrangers. Bank of America, N.A. serves as the Administrative Agent; U.S. Bank National Association and Wells Fargo Bank, National Association serve as Syndication Agents; PNC Bank, National Association, Bank of Montreal, SunTrust Bank, The Bank of Nova Scotia and Compass Bank serve as Documentation Agents. Capital One, National Association; Regions Bank; Sumitomo Mitsui Banking Corporation; and TD Bank, N.A. serve as Senior Managing Agents. Branch Banking and Trust Company; Raymond James Bank, N.A.; Land Bank of Taiwan, New York Branch; Taiwan Business Bank, Ltd., New York Branch; Taiwan Cooperative Bank, Ltd., Seattle Branch; and First Commercial Bank, Ltd., Los Angeles Branch are also participating in the Term Loan.