DIAMONDROCK HOSPITALITY COMPLETES $1.2 BILLION REFINANCING

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BETHESDA, MD., September 28, 2022 /PRNewswire/ — DiamondRock Hospitality Company (the “Company”) (NYSE: HRD) today announced that it has successfully refinanced its main unsecured credit facility to further enhance the strength and flexibility of its balance sheet. The Company has entered into an amendment and restatement of its $750 million credit facility (the “Credit Facility”), bringing the aggregate credit facility to $1.2 billion and the extension of the Company’s schedule. The credit facility includes a $400 million revolving credit facility, a $300 million term loan with a maturity in January 2026including a one-year extension option, and a $500 million term loan maturing in January 2028. The revolving credit facility matures in September 2027, including two six-month extension options. The facilities will bear interest according to a leverage-based pricing schedule ranging from 1.35% to 2.25% over the applicable SOFR adjusted term.

“Balance sheet flexibility and liquidity are key to taking advantage of capital allocation opportunities in this environment,” said Mark W. Brugger, President and CEO. “This financing achieved our goal of increasing investment capacity while improving DiamondRock’s conservative balance sheet. We expect to end the year with cash in excess of $600 million without short-term debt maturities and 30 hotels unencumbered with guaranteed debts.”

“We appreciate the support our lending partners have provided to significantly increase our corporate borrowing in this environment,” said Jeff DonnellyExecutive Vice President and Chief Financial Officer.

The Company used the proceeds of the term loans to repay the $350 million term loan in the previous facility, the $50 million term loan facility which was due to mature in October 2023 and the $150 million which was outstanding on its revolving credit facility. The Company expects to use the remaining proceeds to pay off its 2023 mortgage maturities over the next 90 days. Upon repayment of the mortgages, the Company will have no debt maturities until August 2024.

The following table illustrates the Company’s debt maturity reflecting this financing and the payments described above.


2022

2023

2024

2025

2026

2027

2028


(in millions)

Corporate debt








Unsecured Term Loans

$300.0

$500.0

$400 million senior unsecured credit facility

$-

Total company debt

$-

$-

$-

$-

$300.0

$-

$500.0









Mortgage debt








Manhattan/Midtown East Court

$76.6

Worthington Renaissance Hotel Fort Worth

$76.1

Hotel Clio

$57.8

Westin Boston Seaport District

$179.6

Total mortgage debt

$-

$-

$76.6

$313.5

$-

$-

$-









Total debt

$-

$-

$76.6

$313.5

$300.0

$-

$500.0

NOTE: Amounts above reflect debt balances as of September 30, 2022 and assumes the exercise of all extension options.

About the company

DiamondRock Hospitality Company is a self-administered real estate investment trust (REIT) that owns a leading portfolio of geographically diverse hotels concentrated in leisure destinations and key gateway markets. The company currently owns 34 premium hotels with over 9,500 rooms. The company has strategically positioned its hotels to operate under both leading global brand families as well as independent boutique hotels in the lifestyle segment. For more information about the company and its portfolio, please visit the DiamondRock Hospitality Company website at www.drhc.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of words and phrases such as “believe”, “expect”, “intend”, “project”, “plan”, “plan” and other similar terms and expressions, including references to assumptions. and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, hospitality industry, as well as the financial condition and results of operation of the Company and its hotels; adverse changes in national and local economic and business conditions, including, but not limited to, rising inflation and interest rates, loss of jobs or growth trends, increased unemployment or a decline in corporate profits and investment; operational risks related to the hotel business; the risks associated with the Company’s level of indebtedness; relationships with property managers; the ability to be competitive in areas such as access, location, quality of accommodations and room rate structures; changes in travel habits, taxes and government regulations that influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company’s filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, it cannot guarantee that the expectations will be achieved or that any deviations will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statements to conform to actual results or to changes in the Company’s expectations.

SOURCE DiamondRock Hospitality Company

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