Chesapeake Lodging Trust Completes Refinancing of $130.0 Million Term Loan
ANNAPOLIS, Md.–(BUSINESS WIRE)–Jul. 11, 2013–?Chesapeake Lodging Trust?(NYSE: CHSP) announced today that it has successfully refinanced its?$130.0 million?term loan secured by the Le Meridien San Francisco and the?W Chicago?? City Center, which was scheduled to mature on?July 8, 2014. The term loan was refinanced with two individual fixed-rate mortgage loans with an aggregate principal amount of?$185.5 million. The first new loan is a seven-year,?$92.5 million?mortgage loan secured by the 360-room Le Meridien San Francisco. The loan was provided by?PNC Bank, N.A.?and carries a fixed interest rate of 3.50% per annum, with principal and interest payments based on a 25-year principal amortization. The second new loan is a 10-year,?$93.0 million?mortgage loan secured by the 403-room?W Chicago?? City Center. The loan was provided by?Goldman Sachs Mortgage Company?and carries a fixed interest rate of 4.25% per annum, with principal and interest payments based on a 25-year principal amortization.
?Considering the recent rise in U.S. treasuries and interest rates generally, we are extremely pleased to announce the execution and timing of our term loan refinancing,? said?Douglas W. Vicari, Chesapeake Lodging Trust?s Executive Vice President and Chief Financial Officer. ?We were able to lock in attractive long-term, fixed-rate debt at a weighted-average interest rate of 3.88%. In addition, the appreciation in and value created by our hotel acquisitions in 2010 and 2011 allowed us to generate significantly greater proceeds as a result of the refinancing.?