Strategic Hotels & Resorts, Inc. announces closing of a five-year, $130 Million Loan Secured by The Four Seasons Washington, D.C. (United States)
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Strategic Hotels & Resorts, Inc. announces closing of a five-year, $130 Million Loan Secured by The Four Seasons Washington, D.C. (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2011-07-21
Strategic Hotels & Resorts, Inc. (NYSE: BEE) today announced that it has closed a $130.0 million limited recourse loan secured by the Four Seasons Washington, D.C. hotel. The property was previously collateral for the Company's revolving credit facility.
"Encumbering this property with single-asset financing efficiently raises significant proceeds while accomplishing our objective of staggering debt maturities," said Diane Morefield, Chief Financial Officer of Strategic Hotels & Resorts, Inc. "This transaction is among the final refinancings included in our overall balance sheet restructuring strategy, which we have been diligently executing against since 2010. The last remaining asset-specific refinancing will be announced once closed."
Under the terms of the agreement, the loan bears interest at a floating rate of LIBOR plus 315 basis points and has a three-year initial term with two, one-year extension options available to the Company upon satisfying certain financial and other conditions. The loan is interest bearing only and not subject to principal amortization through the full loan maturity date. Deutsche Bank Securities Inc. originated the financing and Eastdil Secured served as placement agent.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership interests in 17 properties with an aggregate of 7,762 rooms.
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