RLJ Lodging Trust Strengthens Balance Sheet by Refinancing Over $1.0 Billion of Debt

April 28, 2016
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BETHESDA, Md.--(BUSINESS WIRE)--Apr. 28, 2016-- RLJ Lodging Trust (the “Company”) (NYSE:RLJ) today announced that it successfully refinanced over $1.0 billion of debt consisting of a $400.0 million unsecured term loan (the “2013 Five-Year Term Loan”), a $400.0 million revolving credit facility (the “Revolver”), $148.5 million in secured loans provided by Wells Fargo Bank, N.A., and an $85.0 million secured loan provided by PNC Bank, N.A.

“RLJ has one of strongest balance sheets among publicly traded lodging REITs,” said Thomas J. Baltimore, Jr., President and Chief Executive Officer. “Year-to-date, we have successfully refinanced more than a billion dollars of near-term maturities and demonstrated our commitment to bolstering and maintaining a best-in-class balance sheet.”

The newly amended and restated 2013 Five-Year Term Loan and Revolver reduced interest rates across the pricing grid by an average of 21 and 26 basis points, respectively, enhanced financial covenants, and extended final maturities to 2021 (including applicable extensions). The Company also strengthened its liquidity by increasing the capacity on its Revolver from $300.0 million to $400.0 million.

Additionally, the Company proactively addressed its near-term secured debt maturities, further staggering its debt and enhancing its balance sheet. Three Wells Fargo loans secured by four properties totaling $148.5 million were amended and restated to extend the final maturity to 2022 (including extensions) and improve pricing by 15 basis points. Similarly, the PNC loan, which is secured by five properties, was recast to extend the maturity to 2023 (including extensions) and improve pricing by 25 basis points. The PNC loan was also upsized from $74.0 million to $85.0 million, capitalizing on the improved performance of its underlying assets.

“With the execution of these transactions, we have eliminated all of our near-term debt maturities,” said Leslie Hale, Executive Vice President and Chief Financial Officer. “These deals highlight our relentless effort to maintain a fortress balance sheet with well-laddered maturities and low leverage, as well as a significant pool of unencumbered assets.”

Extending our maturities and upsizing the Revolver and the PNC loan have provided the Company with additional flexibility and liquidity to pursue its overall strategic objectives. The Company’s debt maturities are well staggered; including all extension options, the next tranche of debt will mature in March 2019.

The 2013 Five-Year Term Loan was arranged by Wells Fargo Securities, LLC; PNC Capital Markets LLC; Regions Capital Markets; and U.S. Bank National Association as Joint Lead Arrangers and Joint Bookrunners. The Revolver was arranged by Wells Fargo Securities, LLC; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Capital One, National Association; and Compass Bank as Joint Lead Arrangers and Joint Bookrunners.

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels. The Company owns 125 hotels with approximately 20,800 rooms, located in 21 states and the District of Columbia.

Forward Looking Statements

The following information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs, and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and the Company’s actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the current global economic uncertainty, increased direct competition, changes in government regulations or accounting rules, changes in local, national, and global real estate conditions, declines in the lodging industry, seasonality of the lodging industry, risks related to natural disasters, such as earthquakes and hurricanes, hostilities, including future terrorist attacks or fear of hostilities that affect travel, the Company’s ability to obtain lines of credit or permanent financing on satisfactory terms, changes in interest rates, access to capital through offerings of the Company’s common and preferred shares of beneficial interest, or debt, the Company’s ability to identify suitable acquisitions, the Company’s ability to close on identified acquisitions and integrate those businesses, and inaccuracies of the Company’s accounting estimates. Given these uncertainties, undue reliance should not be placed on such statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the SEC.

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http://rljlodgingtrust.com

Source: RLJ Lodging Trust

For RLJ Lodging Trust:
Leslie D. Hale, 301-280-7774
Chief Financial Officer