Service Properties Trust entered into a new $650 million secured revolving credit facility. The maturity date of the new facility is June 29, 2027, and includes two six-month extensions at the borrower’s option. Interest paid on drawings under the new facility will be based on SOFR plus a margin ranging from 1.50% to 3.00% based on SVC’s leverage ratio as defined in the agreement and will initially be 2.50%. The new facility is secured by 69 properties (66 hotels and three net lease properties). The new facility replaces SVC’s previous $800 million revolving credit facility which had a maturity date of July 15, 2023.

Wells Fargo Securities, PNC Capital Markets and BMO Harris Bank are the Joint Lead Arrangers and Joint Lead Bookrunners for the credit facility. Wells Fargo Bank is the Administrative Agent. PNC Bank and BMO Harris Bank are the Syndication Agents. Citibank, Bank of America and JPMorgan Chase Bank are the Documentation Agents. Other banks participating in the facility include Morgan Stanley Bank and UBS AG, Stamford Branch, and Goldman Sachs Bank.

Brian Donley, Chief Financial Officer of SVC, made the following statement on today’s announcement: “We greatly appreciate the support of our bank group and their commitments to SVC. We believe this new credit facility reflects our improving operating results and demonstrated ability to refinance debt in the current challenging financing market. With nothing currently drawn, the new credit facility also provides us with greater balance sheet flexibility and capacity in the future.”