Strategic Hotels & Resorts, Inc. Announces New $300 Million Credit Facility

Strategic Hotels & Resorts, Inc. BEE today announced that it has closed a new $300.0 million secured, revolving credit facility with an accordion feature allowing for additional borrowing capacity up to $400.0 million. This new facility replaces a $350.0 million secured, revolving credit facility that was set to mature in March 2012. The facility's interest rate is based upon a leverage-based pricing grid ranging from LIBOR plus 275 basis points to LIBOR plus 375 basis points. Upon closing, the initial interest rate is LIBOR plus 300 basis points, a reduction from the previous facility's pricing of LIBOR plus 375 basis points. The facility matures in three years with a one-year extension available to the Company upon meeting certain financial criteria. "Over the past 18 months, we have methodically and proactively addressed the various aspects of our balance sheet, significantly reducing our leverage and providing long-term liquidity," said Diane Morefield, Chief Financial Officer of Strategic Hotels & Resorts, Inc. "Establishing this new line of credit is a vital component of our overall balance sheet restructuring strategy, as it provides favorable pricing and terms along with flexible corporate borrowing capacity into 2015."