LaSalle Hotel Properties Closes Sizeable Unsecured Term Loan
- Nov 11, 2015
LaSalle Hotel Properties has completed a financing transaction and it’s a big one. The multi-operator hotel REIT just closed on a senior unsecured term loan in the amount of $555 million.
Citigroup Global Markets Inc., BMO Capital Markets and U.S. Bank National Association, serving as joint lead arrangers and joint book running managers, arranged the new term loan, which is scheduled to mature in January 2021.
“The debt market remains healthy, especially for lower-risk borrowers like LaSalle, and proceeds from the new term loan essentially pay off the balance of the company’s credit facility and provide increased flexibility to potentially be a more aggressive repurchaser of shares,” Michael Bellisario, research analyst with financial services firm R.W. Baird & Co., told Commercial Property Executive.
Upon closing, LaSalle used a portion of the proceeds to pay off its $177.5 million senior unsecured term loan, and with the remaining funds, paid off the bulk of the balance on its $750 million senior unsecured credit facility.
The right move at the right time. “LaSalle’s balance sheet remains one of the best in the sector with leverage at 3.5x, and the refinancing is well timed ahead of a potential interest rate increase by the Fed,” Bellisario said.