AUSTIN, Texas, March 31, 2025 -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it has successfully closed on a new $275 million senior unsecured term loan (the "Term Loan"). The Company expects to utilize future proceeds from the Term Loan to repay the majority of the Company's outstanding $287.5 million 1.50% Convertible Senior Notes maturing in February 2026. The Term Loan includes a delayed draw feature available to the Company through March 1, 2026, that will enable the Company to preserve the attractive 1.50% interest rate on the Convertible Senior Notes through the scheduled maturity date.
"We greatly appreciate the continued support of our lending partners and are extremely pleased with the successful execution of this term loan financing. This term loan enables us to maintain the favorable interest rate of the 1.5% Convertible Senior Notes, while further strengthening our well-positioned balance sheet by extending our debt maturity profile and preserving flexibility to execute on our strategic initiatives," commented Trey Conkling, the Company's Executive Vice President and Chief Financial Officer.
The Term Loan provides for a maturity date of March 2030, including two, one-year extension options. The pricing grid of the Term Loan ranges from 135 to 235 basis points over the applicable adjusted Term SOFR rate, with expected initial pricing of SOFR plus 190 basis points. The Term Loan includes an accordion feature that allows the Company to increase commitments by up to $50 million, subject to certain conditions. Other terms of the agreement are similar to the Company's existing credit facility agreements.
As a result of this refinancing, the Company's average length to maturity will increase to nearly four years on a pro forma basis, including extension options, and the Company has no significant debt maturities until 2027. Additionally, the Company currently has approximately $320 million of pro rata total liquidity and approximately 77% pro rata fixed interest rate debt and preferred equity capital after giving effect to interest rate derivative agreements.
The transaction included Bank of America, N.A., as administrative agent, Wells Fargo Bank, N.A., as syndication agent, Capital One, National Association, Huntington National Bank, JPMorgan Chase Bank, N.A., Truist Securities, Inc., U.S. Bank National Association and Raymond James Bank, as co-documentation agents, Wells Fargo Securities LLC, BofA Securities, Inc., Capital One, National Association, Huntington National Bank, JPMorgan Chase Bank, N.A., and Truist Securities, Inc., as joint lead arrangers, and Wells Fargo Securities LLC and BofA Securities, Inc., as joint bookrunners.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the Upscale segment of the lodging industry. As of March 31, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,554 guestrooms located in 25 states.
For additional information, please visit the Company's website, www.shpreit.com, and follow the Company on Twitter at @SummitHotel_INN.
Forward Looking Statements
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "forecast," "project," "potential," "continue," "likely," "will," "would" "commit," "target," or similar words or expressions. as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "forecast," "project," "potential," "continue," "likely," "will," "would" "commit," "target," or similar words or expressions.Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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