ARA US Hospitality Trust has refinanced the US$270.8 million ($370.9 million) loan facilities via an amendment and restatement agreement on Sept 26.
The trust currently has a US$244.3 million three-year term loan facility, a US$8.5 million four-year term loan facility and a US$8 million letter of credit facility, which all mature in 2024. These facilities were granted via a facility agreement dated Nov 28, 2018.
Under the new facility agreement, the term loan facilities that were previously granted will be re-allocated and extended into a US$198.5 million three-year loan facility and a US$51 million term loan facility that will mature in September 2026 and September 2027 respectively.
A new US$30 million three-year revolving credit facility that will mature in September 2026 has also been granted to the REIT managers. In addition, the maturity date of the existing US$8 million letter of credit facility will be extended to September 2026.
The amendments will be effective on Sept 29.
Under the new facility agreement, the REIT will have to make a prepayment of the facilities if ARA Asset Management Limited ceases to own at least 51% of the shares in the REIT managers without the consent of the majority lenders.
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The REIT will also have to make a prepayment if the managers cease to be the REIT managers or are removed without the consent of the majority lenders.
Should a prepayment occur, some US$374.5 million of the REIT’s loan facilities may be affected.
In a separate statement, the REIT announced that it has completed the sale of Hyatt Place Oklahoma City Airport for US$8.0 million.
As at 9.25am, units in ARA US Hospitality Trust XZL are trading flat at 30.5 US cents.
