Strategic Hotels Announces Closing of a Seven-year, $110 Million Loan
Loan secured by the Loews Santa Monica Beach Hotel
July 18, 2011 - This new financing replaces the $118.3 million in financing previously encumbering the property, with the differential to the previous loan amount funded on the Company's revolving credit facility.
Strategic Hotels & Resorts, Inc. (NYSE: BEE) today announced that it has closed a $110.0 million limited recourse loan secured by the Loews Santa Monica Beach Hotel. This new financing replaces the $118.3 million in financing previously encumbering the property, with the differential to the previous loan amount funded on the Company's revolving credit facility.
"We are pleased to announce another accelerated hotel refinancing with the closing of a new mortgage loan on the Loews Santa Monica Beach Hotel, which was set to mature in March 2012. The bank loan allows for a term of up to seven years, which complements our stated strategy of staggering all future debt maturities," summarized Diane Morefield, Chief Financial Officer of Strategic Hotels & Resorts, Inc.
Under the terms of the agreement, the loan bears interest at a floating rate of LIBOR plus 385 basis points and has a four-year initial term with three, one-year extension options available to the Company upon satisfying certain financial and other conditions. Scheduled amortization of $500,000 per quarter will begin two years after closing. Wells Fargo Bank originated the financing and Eastdil Secured served as placement agent.
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership interests in 17 properties with an aggregate of 7,762 rooms.
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