Pebblebrook pushes out debt wall to 2025 with loan extension, paydowns

Chicago, Jan. 4 – Pebblebrook Hotel Trust announced that it has no meaningful debt maturities until October 2025 after the company extended a term loan and paid down a portion of the debt due later in the year, according to a press release.

First, Pebblebrook said it extended $357 million of its $460 million term loan to January 2028. Pricing on all of the company’s term loans remains at SOFR plus 140 basis points to 245 bps.

BofA Securities Inc. led the company’s term loan extension, serving as joint lead arranger and sole bookrunner. U.S. Bank NA serves as the syndication agent. Capital One, NA, PNC Capital Markets LLC, TD Bank, N.A., Truist Securities, Inc. and Wells Fargo Bank, NA serve as documentation agents and joint lead arrangers. Raymond James Bank, Regions Bank, and Sumitomo Mitsui Banking Corp. serve as senior managing agents.

The company also paid down approximately $157.6 million of existing term loans and private placement notes.

Specifically, the company brought the October 2024 loan to $400 million from $460 million through a paydown.

In addition, the company paid down its October 2025 maturity term loan to $410 million from $460 million.

For the private notes, Pebblebrook paid down $47.6 million at maturity in December.

The paydowns leave $43 million of debt maturing in late 2024.

The company noted that its $650 million credit facility remains undrawn and fully available.

Following these debt activities, the company has approximately $2.2 billion of outstanding debt and convertible notes at a weighted average interest rate of 4.6%.

After taking swap agreements into account, approximately 75% of the company’s total outstanding debt and convertible notes effectively bear interest at fixed rates.

Cash from the balance sheet was used for the debt paydowns, in accordance with stated strategic capital allocation objectives.

Pebblebrook is a Bethesda, Md.-based real estate investment trust.

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