Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2020

Long-Term Debt [Abstract]

Summary of Long Term Debt

Lender		Balance at March 31, 2020	Interest rate at March 31, 2020	Maturity	Amortization provision	Properties encumbered at March 31, 2020	Balance at December 31, 2019
Fixed rate debt
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18	$	8,593	4.54%	08/2024	25 years	1	$	8,639
Great Western Bank (1)		13,199	4.33%	12/2021 (5)	25 years	1		13,290
Great Western Bank (1)		915	4.33%	12/2021 (5)	7 years	-		971
Total fixed rate debt		22,707						22,900
Variable rate debt
Wells Fargo		25,499	3.97% (2)	11/2022 (6)	30 years	3		25,612
KeyBank credit facility (3)		95,865	4.84% (4)	4/2021 (7)	Interest only	9		86,845
KeyBank Aloft		34,080	3.05% (8)	5/2020 (9)	Interest only	1		-
Total variable rate debt		155,444				15		112,457
Total long-term debt	$	178,151					$	135,357
Less: Deferred financing costs		(1,426)						(1,356)
Total long-term debt, net of deferred financing costs	$	176,725					$	134,001

(1) Both loans are collateralized by Aloft Leawood.

(2) Variable rate of 30-day LIBOR plus 2.39%,  effectively fixed at 4.44% after giving effect to interest rate swap (see Note 8).

(3) Prior to March 30, 2020, the $150,000 credit facility included an accordion feature that would allow the credit facility to be increased to $400,000 with additional lender commitments. Available borrowing capacity under the credit facility was based on a borrowing base formula for the pool of hotel properties securing the facility.  The commitment fee on the unused facility was 0.20%.  On March 30, 2020, the Sixth Amendment to the credit facility, as discussed above, modified this availability to set the size of the facility at $102,000 with no ability to reborrow under the facility in the future without lender approval.

(4) Prior to March 30, 2020, borrowings under the facility accrued interest based on a leverage-based pricing grid, at the Company’s option, at either LIBOR plus a spread ranging from 2.25% to 3.00% (depending on leverage) or a base rate plus a spread ranging from 1.25% to 2.00% (depending on leverage).  On March 30, 2020, these terms were modified with the Sixth Amendment to the credit facility, as discussed above, to increase the interest rate to LIBOR (with a floor of 0.25%) plus 3.25% or a base rate plus 2.25%, with further increases to interest rate spreads of 0.25% at six month intervals.  The 30-day LIBOR for $30,000 notional capped at 3.35% after giving effect to market rate cap (see Note 8). 

(5) Term may be extended for additional two years subject to interest rate adjustments.

(6) Twoone-year extension options subject to the satisfaction of certain conditions.

(7) With the signing of the Sixth Amendment to the credit facility as discussed above, two extension options (six months and five months) are available subject to the satisfaction of certain conditions.

(8) Borrowings accrue interest at the Company’s option at LIBOR plus 2.25% or a base rate plus 1.25%.

(9) Matures upon the earlier to occur of (a) consummation of the merger under the Merger Agreement (see Note 1) and (b) May 8, 2020.  This loan was refinanced using the credit facility subsequent to quarter end as discussed in Subsequent Events (see Note 16).

Aggregate Annual Principal Payments on Debt

Aggregate annual principal payments on debt for the remainder of 2020 and thereafter are as follows:

	Total
Remainder of 2020	$	35,002
2021		110,209
2022		24,886
2023		214
2024		7,840
Thereafter		-
Total	$	178,151

After consideration of the refinancing of the New Term Loan on May 13, 2020 as discussed above, aggregate annual principal payments on debt for the remainder of 2020 and thereafter are as follows:

	Total
Remainder of 2020	$	922
2021		144,289
2022		24,886
2023		214
2024		7,840
Thereafter		-
Total	$	178,151