Braemar Hotels & Resorts announced it has refinanced the mortgage loan for its Ritz-Carlton, Lake Tahoe property through a new agreement with Western Alliance Bank. The new loan provides $60 million at closing with an optional $15 million earnout facility, securing a lower interest rate spread and significantly extending the company's debt maturity profile.
Key Details
- Loan Agreement: A total potential loan of $75 million, consisting of a $60 million initial term loan and a $15 million earnout facility.
- Interest Rate: The loan bears a floating interest rate of one-month Term SOFR + 2.65%, a reduction from the previous loan's spread of SOFR + 3.25%.
- Maturity & Terms: The loan has an initial three-year term maturing October 30, 2029, with two one-year extension options. Payments are interest-only for the initial term.
- Strategic Impact: This refinancing replaces a loan maturing in January 2027 and extends the company’s next hard debt maturity to December 2028.