RLJ Lodging Trust 8-K

What Happened

• RLJ Lodging Trust announced on February 11, 2026 that it entered into a Sixth Amended and Restated Credit Agreement with Wells Fargo (as administrative agent) that replaces its prior credit agreement. The Amended Credit Agreement extends the scheduled maturity of the Operating Partnership’s $600 million revolving credit facility from May 10, 2027 to February 11, 2030 (with extension options) and documents a new unsecured delayed-draw Tranche A-1 Term Loan and an existing Tranche A-2 Term Loan. As of the closing, the Company had $0 outstanding under the Revolver, $225 million outstanding under the Tranche A-1 Term Loan, and $500 million outstanding under the Tranche A-2 Term Loan.
• In a related transaction on the same date, RLJ entered a separate $150 million unsecured delayed-draw term loan with Huntington (maturing February 11, 2033) intended to help repay a portion of RLJ’s 3.750% senior notes due 2026. RLJ also amended its 2022 term loan with Capital One and refinanced two PNC mortgage loans (outstanding $154.8M) to new maturities beginning April 10, 2029.

Key Details

• Closing date: February 11, 2026. Revolver: $600 million, maturity extended to Feb 11, 2030 (with a one-year or two 6‑month extension options subject to conditions).
• Tranche A-1 Term Loan: new unsecured delayed-draw facility up to $569 million ( $225M outstanding at close); scheduled maturity Feb 11, 2031.
• Tranche A-2 Term Loan: $500 million unsecured term loan (documented under the Amended Agreement) with initial scheduled maturity Sept 24, 2027 (extendable).
• Huntington term loan: $150 million unsecured delayed-draw term loan, maturity Feb 11, 2033, to be used to repay part of the 2026 Senior Notes.
• Pricing: Borrowings generally accrue interest at SOFR + margin (margins vary by facility and leverage, e.g., Revolver SOFR + 140–195 bps or base rate + 40–95 bps); unused-commitment fee 20–25 bps. Investment Grade Pricing Election can lower margins and replace the unused fee with a facility fee (10–30 bps).
• Financial covenants include a maximum leverage ratio of 7.25x, minimum adjusted EBITDA to fixed charges of 1.5x, secured indebtedness ≤45% of asset value, and unsecured indebtedness ≤60% of unencumbered asset value; an interest-rate step-up (+35 bps for six months) applies if leverage exceeds 6.5x.

Why It Matters

• These agreements materially extend RLJ’s liquidity runway and provide additional term loan capacity to refinance near-term debt (notably the 2026 senior notes). For investors, that reduces near-term refinancing risk by pushing out maturities and locking in financing options.
• The facilities include customary covenants and guarantees from property-owning subsidiaries, and pricing is tied to RLJ’s leverage and potential future investment-grade rating (which could lower borrowing costs). Key metrics to watch are RLJ’s leverage ratio, cash flow/EBITDA and any draws on the new facilities used to retire the 2026 notes.