Red Lion Hotel Corporation today affirmed the company has finished the extension of its credit facility agreement for Wells Fargo Bank. Under the secured office, Red Lion Hotels acquired $45 million in a term loan with a 15-year amortization developing in June 2018. Continues from the term loan were used to refinance approximately $38 million in developing CMBS debt and pay expenses in association with the transaction. The remainder will be utilized to invest into capital expenditure and for general corporate purposes.
Furthermore, a $10 million two-year rotating line of credit is accessible under the facility. The company has vowed 19 Red Lion properties as security for the new agreement.
“Our enhanced balance sheet has led to more ideal terms with the signing of the expanded Wells Fargo credit office,” said Julie Shiflett, Executive Vice President and Chief Financial Officer for Red Lion Hotels Corporation. “Presently, we have more flexibility, incorporating no punishments for prepayment. The additional funds got will permit us to take advantage of franchise development chances and reinvest in our owned hotels to proceed to improve upon the guest experience.”
“Since June 2011, Red Lion Hotels has lessened its debt by over $58 million and obtained $37 million of rented properties using proceeds from the sale of assets,” said Shiflett.