Pebblebrook Hotel Trust enters into $200 million three-year revolver

By Jennifer Chiou

New York, June 8 - Pebblebrook Hotel Trust entered into on Friday a $200 million three-year unsecured revolving credit agreement as parent guarantor with Pebblebrook Hotel, LP as borrower, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA was the administrative agent with Bank of America Merrill Lynch as joint lead arranger and bookrunner, US Bank NA as syndication agent and Raymond James Bank, FSB as documentation agent.

The loan may be increased by an additional $200 million and has a one-year extension option.

The filing noted that availability under the credit agreement is based in part on the commitments of all the lenders and a ratio of net operating income from qualifying unencumbered borrowing base properties to the annual debt service on all of the company's and its subsidiaries' unsecured debt, assuming a 25-year amortization schedule and an interest rate equal to the greater of 7% and the 10-year Treasury Constant Maturities rate plus 3%.

Pebblebrook said that it expects seven properties to become unencumbered borrowing base properties under the agreement: Sheraton Delfina Santa Monica, Sir Francis Drake Hotel, the Grand Hotel Minneapolis, Westin Gaslamp Quarter, Mondrian Los Angeles, Viceroy Miami and Hotel Monaco Seattle.

The W Boston, previously reported as a probable acquisition by the company, is expected to become an unencumbered borrowing base property if the acquisition is completed, the filing added.

Pricing is based on leverage and will be in the range of Libor plus 250 basis points to 350 bps for letters of credit and Libor plus 150 to 250 bps for swingline loans.

Pebblebrook is a Bethesda, Md.-based real estate investment trust focused on acquiring and investing in upper-upscale full-service hotels.

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