Reit Credit Agreements
Service Properties Trust is a REIT with a diversified portfolio of demand-driven hotels and net rental and retail real estate services in the United States, as well as in Puerto Rico and Canada, with 148 different brands in 23 sectors. SVC`s real estate assets are operated under long-term management or leasing contracts. SVC is managed by the operating subsidiary of CMA Group Inc. (Nasdaq: CMA), an alternative asset management company based in Newton, Massachusetts. Kristin Brown, Director, Investor Relations (617) 796-8232 www.svcreit.com Wells Fargo Bank NA is a director of the credit agreement. Wells Fargo Securities, LLC, BofA Securities, Inc., PNC Capital Markets, LLC and RBC Capital Markets acted as Joint Lead Arranger and Joint Lead Bookrunners in the amendment to SVC`s credit agreement. Wells Fargo Bank, National Association is the administrator. Bank of America, N.A., PNC Bank, National Association and Royal Bank of Canada are agents of the Syndication. Brookfield Property REIT Inc., which focuses on the regional shopping centre, amended a credit agreement from August 24, 2018, including to ease some relief for financial pacts until June 30, 2021.
“We appreciate the efforts of our participating lenders who have worked with us to implement this amendment that increases our financial flexibility. This amendment ensures our continued access to unheded-out funds under our credit facility, and we believe that we provide sufficient liquidity to finance our current capital requirements until at least the end of 2021. We also appreciate the fact that many of the increased costs and restrictions we have approved under this amendment, including interest rate increases, equity commitments and business restrictions, do not go beyond the end of the exemption period on March 31, 2021. NEWTON, Mass.–(BUSINESS WIRE)- Service Properties Trust (Nasdaq: SVC) announced today that it has amended the credit agreement for its $1 billion unsecured revolving credit facility and a $400 million unsecured loan. The amendment provides for the waiver of certain financial agreements under their credit agreement until March 31, 2021, in which SVC will continue, under certain conditions, to have access to amounts not recovered under the credit facility. In return for temporary relief from federal agreements and continued access to unpaid funds under its credit facility, SVC accepted the following temporary changes to its credit facility until March 31, 2021: the company agreed that it would maintain an ongoing liquidity pact that would be reviewed from the last day of each month to determine the unlimited amount of available cash not used under the facility. Renewable. and amounts not used under the new $500 million cash facility. Unless legally binding, SVC does not intend to update or modify forward-looking statements based on new information, future events or other information. John Murray, President and Chief Executive Officer of SVC, issued the following statement: The Commercial Real Estate (CRE) Sector Feels the Impact of the Coronavirus You should not place unue reliance on forward-looking states. The amendments permanently eliminate the maximum total debt in proportion to the financial year of support and reduce the minimum coverage rate to 1.20 times during the discharge period, before being multiplied by 1.35. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws.
These forward-looking statements are based on SVC`s current beliefs and expectations, but these statements and the implications of such statements are not guaranteed and cannot occur for a variety of reasons, some of which are not controlled by SVC.