DiamondRock Hospitality Company refinanced, upsized and extended the maturities under its senior unsecured credit facility, further enhancing the strength and flexibility of its conservative balance sheet, according to the company. The company entered into an amendment and restatement of its existing $1.2 billion facility, increasing the size to $1.5 billion and extending the company's maturity schedule. The credit facility is comprised of a $400 million revolving credit facility maturing in January 2031, inclusive of two six-month extension options, a $500 million term loan maturing in January 2029, inclusive of two six-month extension options, a $300 million term loan maturing in January 2030 and a $300 million term loan maturing in January 2030, inclusive of two six-month extension options. The term loans are prepayable at any time without prepayment penalty.
The company is using the incremental $300 million of proceeds under the credit facility to repay three mortgage loans that matured or will mature in 2025. The mortgage loans secured by the Worthington Renaissance Fort Worth Hotel and the Hotel Clio, which together had a principal balance totaling approximately $125.0 million, were repaid on their respective maturity dates in May 2025 and July 2025 prior to the closing of the credit facility. The company intends to prepay the $166.6 million mortgage loan secured by the Westin Boston Seaport District in September 2025. Following this repayment, the company will have no debt maturities until January 2028 and its portfolio will be fully unencumbered by secured debt.
"We greatly appreciate the continued support of our lending partners through the upsizing and extension of our credit facility. Maintaining low leverage and no debt maturities until 2028 increases our financial flexibility and positions the Company to take advantage of internal and external capital allocation opportunities over the next several years," Briony Quinn, the company's executive vice president, chief financial officer and treasurer, said in a statement.