BETHESDA, Md., Feb. 08, 2017 (GLOBE NEWSWIRE) -- Condor Hospitality Trust, Inc. (NASDAQ:CDOR), a hotel-focused real estate investment trust (REIT) headquartered and incorporated in the state of Maryland, today announced that it has executed a commitment letter with two lenders for a $90 million senior secured credit facility. KeyBank and The Huntington National Bank are the joint lead arrangers for the revolving credit facility with KeyBank serving as administrative agent and The Huntington National Bank serving as syndication agent.
The commitment letter provides for a revolving credit facility with an initial size of $90 million and includes an accordion feature that would allow the Company to increase the size of the facility to $400 million. The facility matures in two years and has an automatic one-year extension upon the completion of specific capital achievements. The facility has two additional one-year extension options following additional capital achievements. Borrowings will bear interest at a rate determined by a leverage-based pricing grid.
“We are very pleased with the commitment letter provided by both KeyBank and The Huntington National Bank and we look forward to closing the proposed credit facility. This is another significant milestone for Condor as the proposed credit facility will further solidify the Company’s balance sheet by reducing the Company’s weighted average cost of debt from approximately 5.4% to 4.7%, translating to approximately $0.7 million in annual interest cost savings. Additionally, it will lengthen the Company’s weighted average debt maturity to 2.9 years and accelerate the closing of acquisitions, including the recently announced acquisition of four Home2 Suites hotels,” said Jonathan J. Gantt, Condor’s Chief Financial Officer. “We believe this new facility is a strong indicator of Condor’s credit-worthiness and our standing within the industry as a leading hotel REIT focused exclusively on premium-branded, select-service hotels in the top 100 MSAs,” Mr. Gantt continued.
The closing of the facility is expected to occur in the first quarter of 2017 upon successful completion of certain diligence items and closing conditions including executed loan documents and compliance with financial covenants customary for corporate credit facilities of this type.
About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. (NASDAQ:CDOR), is a self-administered real estate investment trust incorporated in the state of Maryland that specializes in the investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited-service hotels. The company currently owns 19 hotels in 12 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott/Starwood, InterContinental Hotels Group, Choice, and Wyndham. For more information or to make a hotel reservation, visit www.condorhospitality.com.
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the company’s filings with the Securities and Exchange Commission.