Chesapeake Lodging Trust Completes $70.0 Million Financing
Chesapeake Lodging Trust (NYSE: CHSP) announced today that it has closed on a $70.0 million fixed-rate mortgage loan. The loan is secured by the 613-room Denver Marriott City Center and was provided by Western National Life Insurance Company. The loan has a term of 30 years, but is callable by the lender after 10 years, and the Trust expects the lender to call the loan promptly at that time. The loan carries a fixed interest rate of 4.90% per annum, with principal and interest based on a 30-year amortization. Proceeds from the loan were used to repay the remaining outstanding borrowings under the Trust?s revolving credit facility and for general business purposes.
?We are very pleased to take advantage of the historically low interest rate environment and obtain fixed-rate financing for 10 years at less than 5.0%,? said Douglas W. Vicari, Chesapeake Lodging Trust?s Executive Vice President and Chief Financial Officer.