BETHESDA, Md., Jan. 25, 2021 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States, announced today that it further amended the credit agreement for its $400 million revolving credit facility and $350 million unsecured term loan and the credit agreement for its $50 million unsecured term loan to extend the waiver period for the testing of financial covenants from March 31, 2021 to December 31, 2021 unless terminated early at the Company's option. The amendments also extend the modification of certain financial covenants, once quarterly testing resumes, to March 31, 2023.
The amendments also provide the Company with the ability to retain proceeds from equity issuances to acquire unencumbered properties or hold as cash as long as the revolving credit facility balance is less than $175 million and the ability to retain proceeds from the sale of unencumbered properties, so long as the proceeds are used within 180 days to acquire unencumbered properties.
"We value the unanimous support and recognition of our balance sheet strength from our long-standing lending partners, especially during this challenging environment," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "The amendments allow DiamondRock to remain in compliance with all of its loan requirements and enhance the flexibility to opportunistically pursue new investments and recycle capital during this period of dislocation."
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a portfolio of hotels located in highly desirable destination resort markets and key gateway cities. The Company's 31 high quality hotels contain over 10,000 rooms and are strategically positioned under either leading global brands or as unique boutique hotels/resorts in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.
