Condor Hospitality Trust Announces Closing of New $90 Million Secured Revolving Credit Facility (3/01/17)
BETHESDA, Md., March 01, 2017 (GLOBE NEWSWIRE) -- Condor Hospitality Trust, Inc. (NASDAQ:CDOR), a hotel-focused real estate investment trust (REIT) headquartered and incorporated in the state of Maryland, today announced the closing of a new $90 million secured revolving credit facility. KeyBank and The Huntington National Bank are the joint lead arrangers for the revolving credit facility with KeyBank serving as administrative agent and The Huntington National Bank serving as syndication agent.
The revolving credit facility has an initial size of $90 million and includes an accordion feature that would allow the Company to increase the size of the facility to $400 million, subject to certain conditions. The facility matures in two years and has an automatic one-year extension upon the completion of specific capital achievements. The facility has two additional one-year extension options following additional capital achievements. Borrowings will bear interest at LIBOR plus a margin determined by a leverage-based pricing grid.
“We are pleased to partner with KeyBank and The Huntington National Bank, and appreciate their support of Condor’s strategy that is focused on building a high-quality portfolio of premium-branded, select-service hotels mostly located in the top 100 MSAs. The closing of the credit facility is another significant milestone for Condor as the new credit facility further solidifies the Company’s balance sheet by reducing the Company’s weighted average cost of debt from approximately 5.4% to 4.8%, translating to approximately $0.6 million in annual interest cost savings. Additionally, it lengthens the Company’s weighted average debt maturity to 2.9 years and enables the accelerated closing of acquisitions, including the recently announced acquisition of four Home2 Suites hotels,” said Jonathan J. Gantt, Condor’s Chief Financial Officer. “We believe this new facility is a strong indicator of Condor’s credit-worthiness and our standing within the industry as a leading hotel REIT,” Mr. Gantt continued.
About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. (NASDAQ:CDOR), is a self-administered real estate investment trust incorporated in the state of Maryland that specializes in the investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited-service hotels. The company currently owns 19 hotels in 12 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott/Starwood, InterContinental Hotels Group, Choice, and Wyndham. For more information or to make a hotel reservation, visit www.condorhospitality.com. https://globenewswire.com/news-release/2017/03/01/929760/0/en/Condor-Hospitality-Trust-Announces-Closing-of-New-90-Million-Secured-Revolving-Credit-Facility.html?parent=929584