DEC 31, 2013 2:56pm ET

Sotherly Refinances Florida Hotel

Print
Reprints
Email

Sotherly Hotels Inc. has refinanced the Crowne Plaza Hollywood Beach Resort with a $57 million interest-only nonrecourse loan provided by Bank of America Merrill Lynch. Sotherly owns 25% of the Hollywood Beach, Fla., hotel in a joint venture with the Carlyle Group.

Proceeds were used to pay off the prior first mortgage and to make a distribution to the joint venture partners. Sotherly used $3.5 million of its share of the proceeds to repay Carlyle debt it owed related to the joint venture.

The new loan is indexed to the one-month Libor plus 395 basis points. It matures in January 2016, according to a press release from Sotherly.

But an 8-K filing from the company obtained via DisclosureNet.com says the loan has a three-year initial term plus two one-year extension options. If the first extension option is exercised, the interest rate jumps to the one-month Libor plus 420 bps. For the second extension, it is Libor plus 445 bps.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
You must be registered to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Twitter
Facebook
LinkedIn
Already a subscriber? Log in here
Please note you must now log in with your email address and password.