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Hersha Hospitality Trust Announces Completion of $250 Million Senior Secured Credit Facility

^{Published on 2010-11-09 13:01:56 - Market Wire}
 

PHILADELPHIA--([ BUSINESS WIRE ])--Hersha Hospitality Trust (NYSE: HT), owner of select service and upscale hotels in major metropolitan markets, announced today that the Company entered into a new $250 million senior secured revolving credit facility, which replaced the Companya™s prior $135 million senior secured credit facility.

"We are pleased to have increased our financing capacity with the closing of the new credit facility"

TD Securities (USA) LLC arranged the new credit facility and TD Bank, N.A. will act as the administrative agent for the various lenders participating in the new credit facility. The syndicate of banks participating in the Companya™s new credit facility include TD Bank; M&T Bank; Raymond James Bank; Bank of America, N.A.; Barclays Bank Plc; Deutsche Bank AG; Goldman Sachs Bank USA; Morgan Stanley Bank, N.A.; The Provident Bank; UBS Loan Finance LLC; and Sovereign Bank.

aWe are pleased to have increased our financing capacity with the closing of the new credit facility,a commented Jay H. Shah, Hershaa™s Chief Executive Officer. aWith a syndicate of 11 banks participating in the facility, we have the support of a notable group of banks, providing us with greater balance sheet flexibility. This new credit line gives us the capacity to pursue attractive external growth opportunities. Through our network of relationships as one of the largest owners of select service hotels in urban northeastern markets, we expect to continue to execute on our strategy by selectively expanding the portfolio while continuing to maximize the operating results of our existing portfolio.a

The $250 million credit facility matures on November 5, 2013 and the Company may request an extension of the maturity date for an additional year. Borrowings will bear interest at a rate determined by a leverage-based pricing grid. LIBOR rate loans will bear interest at LIBOR plus an applicable margin of either 350 or 375 basis points per year, subject to a LIBOR floor of 75 basis points per year. Prime rate loans will bear interest at the prime rate plus an applicable margin of either 150 or 175 basis points per year.

About Hersha Hospitality

Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 76 hotels, totaling 10,071 rooms, primarily along the Northeast Corridor from Boston to Washington D.C. Hersha also owns hotels in Northern California and Scottsdale, Arizona. Hersha focuses on upscale, mid-scale and extended stay hotels in major metropolitan markets.

Forward Looking Statement

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements include statements related to the Companya™s ability to continue to execute its strategy by selectively expanding the portfolio while continuing to maximize the operating results of its existing portfolio. For a description of factors that may cause the Companya™s actual results or performance to differ from its forward-looking statements, please review the information under the heading aRisk Factorsa included in the Companya™s Annual Report on Form 10-K for the year ended December 31, 2009, as filed with the Securities and Exchange Commission.