Summit Hotel Properties, Inc. 8-K

What Happened
Summit Hotel Properties, Inc. (INN) announced on June 29, 2026 that its operating partnership entered into a Second Amended and Restated Senior Credit Facility with Bank of America, N.A. as administrative agent. The Amended Credit Facility refinances the company’s prior credit agreement and provides $650 million of commitments comprised of a $400 million revolving credit facility, a $200 million term loan, and a $50 million delayed draw term facility. The filing was made on Form 8‑K on June 30, 2026.

Key Details

• Total commitments: $650 million ( $400M revolver; $200M term loan; $50M delayed draw, available via up to two borrowings before Mar 31, 2027 ). Accordion feature can expand total commitments up to $900M subject to lender consent.
• Maturities: $400M revolver matures June 29, 2030 (option to extend to June 29, 2031 subject to conditions); $200M term loan and amounts from the $50M delayed draw mature June 29, 2031.
• Pricing and fees: interest options tied to 1/3/6‑month SOFR + a margin of 1.40%–2.30% (or base rate + 0.40%–1.30%); term loan margin 0.05% lower; quarterly unused revolver fee of 0.20%–0.25%; delayed draw unused fee 0.25% until funded or terminated; customary arrangement and administrative fees.
• Covenants and limits: maximum leverage ratio 7.25:1; minimum consolidated tangible net worth of $1,672,460,755 (plus 75% of net proceeds from future equity issuances); minimum fixed charge coverage ratio 1.50x; secured indebtedness ≤45% of total asset value; secured recourse indebtedness ≤10% of total asset value. Unencumbered-asset pool limits include consolidated unsecured debt ≤60% of unencumbered asset value (65% temporarily twice over life of facility) and unencumbered adjusted NOI to assumed unsecured interest expense ≥2.00x. A minimum of 20 hotels must qualify as unencumbered assets; 52 properties qualified at closing.
• Security: facility is unsecured and guaranteed by the company and subsidiaries that own or lease qualifying unencumbered assets. Borrowing capacity is limited by the value and number of unencumbered assets.

Why It Matters
This agreement refinances Summit’s prior credit facility and establishes the company’s near‑ to medium‑term borrowing capacity and cost of capital through 2030–2031. For investors, the facility provides liquidity (a $400M revolver plus term loans and a delayed draw option), but also imposes financial covenants and unencumbered‑asset tests that could restrict borrowing capacity or require asset adjustments if performance deteriorates. Key items to watch in future filings are covenant compliance, any use of the delayed draw or revolver, and changes to the unencumbered asset pool (currently 52 hotels).