Xenia Hotels & Resorts, Inc. (XHR) recently provided an update about its business strategies. The company shared details about hotel operations, pending transactions and revisions in credit facilities.
On August 11, 2020, Xenia went through a pricing process of its senior secured notes due 2025 of worth $300 million. At the same time it also amended its corporate credit facilities. Those credit agreements include four term loans of $575 million in total and also include a senior revolving credit facility of $500 million.
Xenia also made permanent changes in its corporate credit facilities including getting ability to issue equity to purchase hotels. It also changed validity of compulsory repayment agreements.
As part of amendments, company will be allowed to make use of 45% of funds generated through various means. Those include raising funds by credit notes, equity notes and disposition of its two term loans due to paid in 2022 or that of prepayment of senior revolving credit facility. But all that will be allowed only in case when outstanding balance of senior revolving credit facility becomes less than $350 million.
After utilization of 45% of the raised funds, company will be bound to retain remaining amount. Those retained proceeds would only be used for general corporate operations as allowed by the terms amended.
Company unveiled that net proceeds of $300 million from issuance of senior secured notes were utilized to repay certain debts. Those include partial payments of two term loans and senior revolving credit facility.
Company’s two term loans are maturing in 2022. One of them is maturing in February 2020 and ahs current outstanding balance of $124 million. Other is maturing in October 2020 with current outstanding balance of $89 million. The outstanding balance of senior revolving credit facility now stands at nearly $306 million.
The company is also signed a deal worth $100 million to sell Marriott Napa Valley Hotel & Spa having 275 rooms. The transaction is likely to be closed by this month.