Park Hotels & Resorts successfully amended and restated its existing $901 million revolving credit facility, the company said Thursday.
The Virginia-based hotel real estate investment trust increased its credit facility's total capacity to $950 million, extended the maturity by three years to December 2026 and released all collateral securing the credit facility.
“We are extremely pleased with our bank group’s ongoing support of Park, with oversubscribed commitments allowing us to upsize the credit facility,” Park Chairman and CEO Thomas Baltimore Jr. said in the release. “With the extension of our credit facility and the full repayment of our term loan, Park has maintained its $1.9 billion of liquidity and remains very well-positioned, despite current market uncertainty, to pivot between offense and defense and execute on our long-term strategic goals.”
The credit facility — which was jointly arranged by Wells Fargo, Bank of America, JPMorgan, PNC and Truist — now includes one or more extension options of up to one year and an improved interest on borrowings at an adjusted secured overnight financing rate along with a margin of 1.45% to 2.75% compared to its previous range of 1.5% to 3%.
Baltimore said during Park’s third-quarter earnings call in November that his company will have excess of $2 billion in liquidity by the end of the year after it finalizes $500 million in asset sales, positioning the company for asset acquisitions and stock buybacks.
“Part of the reason why we want to continue to build tremendous liquidity is so Park can be ready and active at that time, even though we don’t think that’s necessarily today or this quarter,” he said.