Eagle Hospitality seeks court approval of $100 million DIP facility

By Sarah Lizee

Olympia, Wash., Jan. 20 – Eagle Hospitality Real Estate Investment Trust unit EHT US1, Inc. is seeking court approval of an up to $100 million debtor-in-possession credit facility, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The facility provides that an additional $25 million will be made available in the event that the debtors reopen one or more existing hotels during the pendency of the Chapter 11 cases.

The company is seeking interim access to $40 million of the facility.

The debtors would use the proceeds of the DIP facility to fund their restructuring efforts, including the marketing and sale of substantially all of their assets, and the administration of the debtors’ Chapter 11 cases.

Wilmington Trust, NA is the administrative agent. The lenders are one or more funds managed by Monarch Alternative Capital LP.

The facility will mature on the earliest to occur of 12 months after the closing date, 45 days after the entry of the interim DIP order if the final order has not been approved by then, the effective date of a plan, five business days after the sale of substantially all of the DIP collateral, and the date the DIP agent, or the date that all outstanding obligations are accelerated following an event of default.

Interest will be Libor plus 675 basis points, subject to a 0.5% Libor floor.

Singapore-based Eagle Hospitality owns a portfolio of corporate, leisure and airport hotels across the United States. U.S. affiliate EHT US1 filed Chapter 11 bankruptcy on Jan. 18 under case number 21-10036.

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