RLJ Lodging Trust announced the successful refinancing of all of its debt maturities through 2028, further laddering its debt maturity schedule and strengthening its balance sheet. The refinancing consists of four tranches including the extension of its revolver, the upsize and recast of one of its existing term loans, the addition of a new seven-year term loan, as well as the refinancing of its secured debt maturing in 2026. The Company intends to use the incremental proceeds raised to pay off its $500 million senior notes at maturity in July 2026.
Following this refinancing, the Company?s next debt maturity is not until 2029. ?We are thrilled with the successful execution of these transactions, which further ladder our debt maturities and strengthen our balance sheet, as we continue to execute on our growth initiatives. While we refinanced our lowest cost debt in a higher interest rate environment, we obtained attractive interest rates, thereby limiting the change in our annual interest expense,?
commented Leslie D. Hale, President and Chief Executive Officer. ?Our ability to successfully execute these transactions at attractive rates is a testament to our strong, longstanding lender relationships for which we value and appreciate their continued support. We are also pleased to welcome M&T Bank and Fifth Third Bank to our bank group.?
The Company?s refinancing transactions consisted of the following: Extended the maturity of its $600 million revolver to 2031, including extensions; Upsized an existing term loan to approximately $570 million with $225 million funded at close and the balance as a delayed-draw commitment, maturing in 2031; Entered into a new seven-year, $150 million delayed-draw term loan that matures in 2033. The Company?s revolver and term loans bear interest at a SOFR rate plus a margin dependent on a ratio of RLJ?s adjusted total indebtedness to consolidated EBITDA; and, Refinanced two mortgage loans, maturing in 2026, for approximately $155 million, extending the maturity to April 2031, inclusive of extensions The incremental proceeds from the delayed draw term loans will allow the Company to address the entire amount of its $500 million senior notes at maturity in July 2026.
