Dealmaker: Park Hotels & Resorts Secures $950M for Proposed Chesapeake Acquisition
Park Hotels & Resorts Inc., Tysons, Va., secured a $950 million unsecured delayed-draw term loan to finance its proposed acquisition of Chesapeake Lodging Trust.
Formerly a part of Hilton Worldwide, Park Hotels & Resorts spun off in January 2017. In May the firm agreed to buy fellow real estate investment trust Chesapeake Lodging Trust, Arlington, Va., in a $2.7 billion deal.
The loan facility announced Thursday included a $100 million two-year tranche and an $850 million five-year tranche. Bank of America originated the loan and will serve as administrative agent.
Park Chairman and CEO Thomas Baltimore Jr. said the proposed merger is making progress. “Assuming a favorable result from Chesapeake’s shareholder vote during the September 10th meeting, we remain on track to close the acquisition by mid- to late-September,” he said.
Park Hotels & Resorts Inc. is the second-largest publicly traded lodging real estate investment trust. It owns 48 branded hotels and resorts with more than 29,000 rooms located primarily in large U.S. markets with high barriers to entry.