ARA US Hospitality Trust has refinanced the US$270.8 million ($370.9 million) loan facilities via an amendment and restatement agreement on Sept 26.

The trust currently has a US$244.3 million three-year term loan facility, a US$8.5 million four-year term loan facility and a US$8 million letter of credit facility, which all mature in 2024. These facilities were granted via a facility agreement dated Nov 28, 2018.

Under the new facility agreement, the term loan facilities that were previously granted will be re-allocated and extended into a US$198.5 million three-year loan facility and a US$51 million term loan facility that will mature in September 2026 and September 2027 respectively.

A new US$30 million three-year revolving credit facility that will mature in September 2026 has also been granted to the REIT managers. In addition, the maturity date of the existing US$8 million letter of credit facility will be extended to September 2026.

The amendments will be effective on Sept 29.

Under the new facility agreement, the REIT will have to make a prepayment of the facilities if ARA Asset Management Limited ceases to own at least 51% of the shares in the REIT managers without the consent of the majority lenders.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/reit-watch/manulife-us-reits-lifeline-hands-egm?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Manulife US REIT’s lifeline in the hands of EGM</a></b></span>

The REIT will also have to make a prepayment if the managers cease to be the REIT managers or are removed without the consent of the majority lenders.

Should a prepayment occur, some US$374.5 million of the REIT’s loan facilities may be affected.

In a separate statement, the REIT announced that it has completed the sale of Hyatt Place Oklahoma City Airport for US$8.0 million.

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ARA US Hospitality Trust refinances US$270.8 mil loan facilities

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