#USA #Bethesda #DiamondRock Hospitality #Credit Facility #refinancing

DiamondRock Hospitality Completes $1.5 Billion Refinancing

DiamondRock Hospitality Company (NYSE: DRH) has made significant strides in its financial management through the successful completion of a refinancing initiative worth $1.5 billion. This strategic move involves an amendment and restatement of the company’s existing $1.2 billion senior unsecured credit facility, allowing for an increase in size and an extension of its maturity schedule.

This restructured Credit Facility now includes a $400 million revolving credit line with a maturity date set for January 2031, which offers the option for two six-month extensions. Additionally, it comprises several term loans:

• - A $500 million term loan maturing in January 2029, also with possible six-month extensions.
• - Two additional term loans, each amounting to $300 million and maturing in January 2030, which too can be extended by six months.

One of the key benefits of this refinancing is the ability to prepay the loans at any time without incurring penalties, thereby offering the company greater flexibility in financial planning. The incremental $300 million obtained from this refinancing will principally serve to repay three mortgage loans nearing maturity in 2025. This includes two loans secured by the Worthington Renaissance Fort Worth Hotel and the Hotel Clio, which altogether had a principal balance nearing $125 million and were settled on their respective due dates in May and July 2025. Furthermore, there are plans to pay off a $166.6 million mortgage linked to the Westin Boston Seaport District in September 2025.

By the conclusion of these loan repayments, DiamondRock will experience no further debt maturities until January 2028, which strategically positions the company to have a debt-free portfolio. This development underscores the company's emphasis on maintaining a conservative financial structure.

Briony Quinn, Executive Vice President and Chief Financial Officer of DiamondRock, expressed gratitude towards their lending partners, acknowledging their support throughout the upsizing and extension process. Quinn pointed out that having low leverage and no impending debt maturities until 2028 significantly enhances the company's financial adaptability, equipping them to seize both internal and external investment opportunities over the next few years.

The credit facility was jointly arranged by a consolidated group of leading financial institutions, including Wells Fargo Securities, BofA Securities, U.S. Bank National Association, and TD Bank, among others. Their collaboration not only reflects the trust in DiamondRock’s operational model but also highlights a collective belief in the hospitality sector's recovery and growth potential.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a self-managed real estate investment trust (REIT) that primarily owns a diverse portfolio of hotels situated in prime leisure destinations and major cities. Currently, the company boasts a portfolio consisting of 36 high-quality hotels and resorts, totaling around 9,600 rooms. Its operational strategy harmonizes mainstream global hotel brands and unique independent boutique hotels in lifestyle segments, further positioning itself favorably in a competitive market.

For more details about DiamondRock Hospitality and its broad portfolio, interested parties can visit their official website at www.drhc.com.

Looking Ahead

While forward-looking statements made by the company point towards confidence in handling market dynamics, they also address inherent risks such as fluctuating travel demand, economic shifts, and potential pandemic-related impacts. The hospitality industry is at a pivotal moment, and the decisions made today will significantly shape its future trajectory. DiamondRock’s strategic refinancing is a testament to proactive management and careful planning aimed at navigating potential market volatility effectively.