Debt

3 Months Ended

Mar. 31, 2021

Note 7: Debt

Debt balances and associated interest rates as of March 31, 2021 were:

			Principal balance as of
	Interest Rate at March 31, 2021	Maturity Date	March 31, 2021			December 31, 2020
			(in millions)
SF CMBS Loan⁽¹⁾	4.11%	November 2023	$	725		$	725
HHV CMBS Loan⁽¹⁾	4.20%	November 2026		1,275			1,275
Mortgage loans	Average rate of 4.16%	2021 to 2026⁽²⁾⁽³⁾		508			509
2019 Term Facility⁽⁴⁾⁽⁵⁾	L + 2.65%	August 2024		670			670
Revolver⁽⁵⁾	L + 3.00%	2021 to 2023⁽⁶⁾		601			601
2025 Senior Secured Notes⁽⁷⁾	7.50%	June 2025		650			650
2028 Senior Secured Notes⁽⁷⁾	5.88%	October 2028		725			725
Finance lease obligations	3.07%	2021 to 2022		1			1
				5,155			5,156
Add: unamortized premium				3			3
Less: unamortized deferred financing costs and discount				(37	)		(38	)
			$	5,121		$	5,121

⁽¹⁾	^{In October 2016, we entered into a $725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF CMBS Loan”) and a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV CMBS Loan”).}

⁽²⁾	^{Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender beginning August 2022.}

⁽³⁾

^{In December 2020, our joint venture executed a forbearance agreement for the $12 million loan secured by the Doubletree Spokane in which the lender agreed to forbear exercising its rights and remedies arising from the joint venture’s non-payment of the loan at maturity due to market conditions until October 6, 2021. Beginning April 2021, the interest rate on the loan will be accrued at the default rate of 6.55%. Additionally, in January 2021, we ceased making debt service payments for the $75 million mortgage loan secured by the W Chicago City Center. Failure to make debt service payments constitutes an event of default. While Park hopes to negotiate an amendment with the lender, there can be no assurances that an agreement will be reached.}

⁽⁴⁾	^{In August 2019, the Company, our Operating Company and PK Domestic entered into a term loan facility (the “2019 Term Facility”).}

⁽⁵⁾	^{In May 2020, we amended our credit and term loan facilities to add a LIBOR floor of 25 basis points.}

⁽⁶⁾

^{In September 2020, we increased our aggregate commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023, including all $75 million of the increased Revolver commitments. The maturity date for the remaining $174 million of commitments under the Revolver is December 2021.}

⁽⁷⁾

^{In May and September 2020, our Operating Company, PK Domestic and PK Finance Co-Issuer Inc. (“PK Finance”) issued an aggregate of $650 million of senior secured notes due 2025 (“2025 Senior Secured Notes”) and an aggregate of $725 million of senior secured notes due 2028 (“2028 Senior Secured Notes”), respectively.}

We are required to deposit with lenders certain cash reserves for restricted uses. As of March 31, 2021 and December 31, 2020, our condensed consolidated balance sheets included $12 million and $10 million of restricted cash, respectively, related to our CMBS and mortgage loans.

Debt Maturities

The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of March 31, 2021 were:

Year	(in millions)
2021⁽¹⁾	$	115
2022		99
2023		1,332
2024		677
2025		657
Thereafter⁽²⁾		2,275
	$	5,155

⁽¹⁾	^{Includes $96 million of the current outstanding balance under the Revolver; however, we have sufficient capacity with extended undrawn commitments under the Revolver to effectively extend for two years.}

⁽²⁾	^{Assumes the exercise of all extensions that are exercisable solely at our option.}