Chatham Lodging Trust Announces Senior Secured Credit Facility

PALM BEACH, Fla., Aug. 10 /PRNewswire-FirstCall/ -- Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium-branded select-service hotels, today announced that it has signed a commitment letter with a group of lenders for an $85 million senior secured credit facility.  Barclays Capital and Regions Capital Markets are the joint lead arrangers for the revolving credit facility, with Barclays Bank PLC serving as the administrative agent and Regions Bank acting as the syndication agent.  Other banks providing commitments for the credit facility include Credit Agricole Corporate and Investment Bank, UBS Investment Bank and US Bank National Association.

The revolving credit facility matures in three years and includes an accordion feature that would allow the company to increase the size of the facility to $110 million.  Borrowings will bear interest at a rate determined by a leverage-based pricing grid and will initially be set at LIBOR plus 325 basis points, subject to a LIBOR floor of 1.25%.  "We appreciate the support of these banks, and we expect to close on the credit facility during the third quarter subject to satisfaction of customary closing conditions," said Julio Morales, Chatham’s chief financial officer.  "This secured line of credit will help us continue to execute our growth strategy, including the pursuit and funding of further hotel acquisitions."  

Chatham Lodging Trust is a self-advised REIT that was organized to invest in upscale extended-stay hotels and premium-branded, select-service hotels.  The company currently owns eight hotels with an aggregate of 1,057 rooms/suites in seven states and has an additional four hotels under contract to purchase.  Additional information about Chatham may be found at www.chathamlodgingtrust.com.

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Chatham Lodging Trust, including those statements regarding sources of funding, acquisitions, capital expenditures, future operating results and the timing and composition of revenues, among others, and statements containing words such as “expects,” “believes” or “will,” which indicate that those statements are forward-looking.  Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results or performance to differ materially from those discussed in such statements.  Additional risks are discussed in the company’s filings with the Securities and Exchange Commission.

SOURCE Chatham Lodging Trust

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