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CorePoint secures new $150 million revolving credit facility due 2020
By Sarah Lizee
Olympia, Wash., June 4 – CorePoint Lodging Inc. indirect wholly-owned subsidiary CorePoint Borrower LLC entered into a credit agreement on May 30 with JPMorgan Chase Bank, NA as administrative agent providing for a $150 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan and KeyBank, NA are joint lead arrangers, with JPMorgan as bookrunner and KeyBank as syndication agent.
Up to $45 million is available in the form of letters of credit.
Borrowings bear interest at Libor plus 450 basis points, and the commitment fee is 50 bps.
The revolver matures on May 30, 2020. There is an option to extend the maturity for one additional year subject to some conditions.
The revolver contains a maximum total net leverage ratio financial covenant and minimum interest coverage ratio financial covenant.
The company drew $25 million under the revolver at consummation of the company’s spin-off from La Quinta Holdings Inc.
As previously reported, CorePoint also entered into a commitment letter with JPMorgan for $1,085,000,000 of secured debt financing to help refinance substantially all of La Quinta’s existing debt in connection with the separation and to provide sufficient funds for CorePoint to make a $983.95 million cash payment to La Quinta.
CorePoint is an Irving, Texas-based publicly traded real estate investment trust focused exclusively on select-service midscale and upper-midscale lodging.
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