Pebblebrook Hotel Trust (NYSE:PEB) reaches agreements with its lenders that stretches out its debt maturities and increases its the amount it can spend on new acquisitions.
The company's banks and lending partners also waived all existing financial covenants through the end of Q1 2023. With the travel and entertainment sector still recovering from the pandemic, the agreements give the hotels and resorts REIT a little extra breathing room in paying off or refinancing its debt.
“This debt extension and amendment improve our overall liquidity while also providing us with more acquisition capacity and flexibility to pursue additional investment opportunities," said Pebblebrook (PEB) Chief Financial Officer Raymond D. Martz.
The company extends the maturity of $611.0M of its $650.0M senior unsecured revolving credit facility to March 2024 from January 2022, assuming it exercises it existing extension options.
The maturity of $274.0M of term loans is extended to March 2024 from January 2023. In addition, the maturity of ~$162.8M of term loans may be extended, at Pebblebrook's (PEB) option, to November 2023 from November 2022. If it exercises all of these debt extension options, the company will have no meaningful debt maturities until November 2023.
Pebblebrook (PEB) increased the amount of reinvestment proceeds that can be used for new acquisitions to $1.0B from $500M and increased the amount of additional secured non-recourse debt it's permitted to take on.
The REIT previously reported 58% occupancy for the week ended Nov. 14, its highest level since the week ended Aug. 1.