Park Hotels amends $2 billion credit facilities

Park Hotels & Resorts Inc. (NYSE: PK) amended and restated its credit agreement to increase total capacity and extend maturity dates across its credit facilities.

The company increased its senior secured revolving credit facility from $950 million to $1 billion and extended the termination date from December 1, 2026 to September 17, 2029. Park also added a new senior unsecured delayed draw term loan facility of up to $800 million, available in up to three draws for up to one year after closing, with a scheduled maturity date of January 2, 2030.

The credit agreement includes a senior unsecured term loan of $200 million that was incurred on May 16, 2024. Combined, the credit facilities provide aggregate capacity of $2 billion.

The agreement includes extension options for the revolving facility and the 2025 term facility of up to one additional year, subject to customary conditions. Borrowings under the facilities will bear interest at a SOFR rate plus a margin based on Park's adjusted total indebtedness to consolidated EBITDA ratio.

Park plans to draw from the 2025 term facility in 2026 to repay a $123 million secured mortgage loan on the Hyatt Regency Boston hotel maturing in July 2026. The company also intends to use proceeds, along with a subsequent financing transaction planned for the first half of 2026, to repay a $1.275 billion secured mortgage loan on the Hilton Hawaiian Village Waikiki Beach Resort maturing in November 2026.

Wells Fargo Securities, BofA Securities, JPMorgan Chase Bank, The Huntington National Bank, M&T Bank, PNC Capital Markets and Truist Securities jointly arranged the credit facility. Wells Fargo Bank serves as administrative agent.

Park operates 39 premium-branded hotels and resorts with approximately 25,000 rooms in prime city center and resort locations.

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