September 28, 2022
On September 28, Willkie client DiamondRock Hospitality Company, a real estate investment trust that owns a portfolio of premium hotels, announced that it successfully refinanced its existing $750 million unsecured credit facility, increasing the total credit facility to $1.2 billion and extending the company's maturity schedule.
The credit facility consists of a $400 million revolving credit facility, a $300 million term loan with a maturity in January 2025, with a one-year extension option, and a $500 million term loan maturing in January 2028. The company utilized the proceeds from the term loans to repay approximately $400 million of prior term loans and $150 million outstanding on its revolving credit facility, and plans to use the remaining proceeds to repay its 2023 mortgage loan maturities.
DiamondRock Hospitality Company is a self-advised real estate investment trust that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. It currently owns 34 premium quality hotels with over 9,500 rooms.
Willkie previously advised DiamondRock in numerous transactions, including its $127 million acquisition of the fee simple condominium interest in the Hilton Garden Inn/Times Square Central and its $495 million acquisition of four hotels from Blackstone Real Estate Partners, as well as the $185 million sale of the Lexington Hotel in New York City, the $143 million sale of the Hilton Minneapolis Hotel, and the $65 million sale of the Hilton Garden Inn Chelsea/New York City.
The deal team was led by partner David Drewes and counsel Ajanaclair Nicole Lynch, and included associates Zanudeen Makorie and Gabriella Hassan.
