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Chatham Lodging Amends Credit Facility

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Hotel real estate investment trust (REIT), Chatham Lodging Trust (CLDT - Free Report) , disclosed the amendment of its credit facility. The move will give the company more financial flexibility and scope to grow through acquisitions.

Chatham Lodging has amended the revolving credit facility amount to $175 million from $105 million and the accordion feature that will help in availing an additional $50 million up from the prior amount of $10 million.

The maturity date has been extended to Oct 2016 and can further be extended by another year. Moreover, the company can enjoy unsecured incremental borrowings in place of fully-secured ones. Notably, the amendment was accomplished on Dec 11, and the company’s outstanding amount on its credit facility currently stands at $49 million.

For Chatham Lodging, the move is a strategic fit and gives the company the opportunity to look for lucrative deals and finance them efficiently. As a matter of fact, the company has already closed high quality hotels acquisitions worth $260 million since last December and further has an active buyout pipeline.

Barclays Capital of Barclays plc (BCS - Free Report) , Regions Capital Markets, US Bank National Association of U.S. Bancorp (USB - Free Report) , Credit Agricole Corporate and Investment Bank and UBS Securities of UBS AG (UBS - Free Report) are the participating lenders for this credit line.

This hotel REIT, which has its focus set on investments in upscale extended-stay hotels and premium branded select-service hotels, owns interests in 77 hotels. This includes 25 hotels that are wholly owned by the company and minority investment in two joint ventures owning 52 hotels.

Chatham Lodging currently has a Zacks Rank #3 (Hold).

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