Playa Hotels & Resorts N.V. and subsidiary, Playa Resorts Holding B.V., entered into an amended and restated senior secured credit agreement pursuant to that certain Restatement Agreement with Deutsche Bank AG New York Branch, as Administrative Agent, Swing Line Lender and Mexican Collateral Agent, Deutsche Bank, Bank of America, N.A. and Citibank N.A., as L/C Issuers, and other lenders.
The Restated Credit Facility amends and restates that certain Credit Agreement, dated as of August 9, 2013 among the company and Deutsche Bank, as Administrative Agent, L/C Issuer, Swing Line Lender and Mexican Collateral Agent, and the lenders party thereto.
The Restated Credit Facility consists of a $100 million revolving line of credit with a maturity date of April 27, 2022 and a $530 million term loan with a maturity date of April 27, 2024. The maturity dates with respect to the Revolving Credit Facility and Term Loan are subject to an earlier maturity date that is 91 days prior to August 15, 2020.
The Revolving Credit Facility also includes a $10 million subfacility for the issuance of standby letters of credit. The Restated Credit Facility also permits an increase in the amount of term loans and the commitments under the Revolving Credit Facility without the consent of the lenders under the Restated Credit Facility in an aggregate principal amount for all such increases of up to $150 million plus such other amounts as would not cause certain financial ratios to exceed the applicable ratio set forth in the Restated Credit Facility, in each case, subject to one or more lenders providing additional commitments for such increases and the satisfaction of certain other customary conditions. The Term Loan was fully funded at closing and is being used to refinance indebtedness outstanding under the Original Credit Agreement, to redeem $115 million in aggregate principal amount of the Borrower’s outstanding Senior Notes and for other general corporate purposes.
The obligations under the Restated Credit Facility are guaranteed by substantially all of our material subsidiaries, subject to certain exceptions. The obligations are further guaranteed by the company on a limited recourse basis, with such guaranty being secured by a lien on the capital stock of the Borrower. The obligations are further secured by, among other things, a lien on all hotels located in Mexico, certain personal property associated with such hotel properties and pledges of equity interests in certain subsidiaries that directly or indirectly own equity interests in any hotel property or certain management companies.
Borrowings under the Term Loan bear interest, at the Borrower’s option, at either a base rate plus a margin of 2.00% or LIBOR plus a margin of 3.00%. Borrowings under the Revolving Credit Facility bear interest, at the Borrower’s option, at either a base rate plus a margin of 2.00% or LIBOR plus a margin of 3.00%. In addition, under our Revolving Credit Facility, the company pays an unused commitment fee on the average daily undrawn amount at a rate that varies between 0.25% and 0.50%, depending on the level of our consolidated secured leverage ratio in effect from time to time.