Pebblebrook Hotel Trust (NYSE: PEB) recently announced the successful refinancing of its near-term debt maturities, strengthening its liquidity profile and extending its overall debt maturity schedule. The company closed a new $450 million senior unsecured term loan, with $360 million funded at closing to refinance the existing $360 million term loan and increase total capacity to $450 million, extending the maturity from October 2027 to February 2031. Additionally, there is a $90 million delayed-draw commitment available to be drawn at the company’s option through December 15, 2026.
The company used $40 million of cash on hand to fully retire the outstanding balance on the Margaritaville Hollywood Beach Resort mortgage originally due in September 2026, further reducing secured debt, lowering interest expense, and simplifying the capital structure. Following the transactions, the company held approximately $150 million in cash, cash equivalents, and restricted cash as of February 11, 2026.
Furthermore, Pebblebrook extended the remaining $48 million portion of its senior unsecured revolving credit facility, restoring the facility’s full capacity to $650 million through October 2029, inclusive of two optional six-month extensions. The $650 million revolving credit facility remains undrawn and available, providing substantial incremental liquidity and flexibility.
Pricing for the term loan and the revolving credit facility remains unchanged and is based on a competitive grid of 140 to 250 basis points over applicable SOFR, depending on leverage. After giving effect to this financing and the company’s interest rate swap agreements, approximately 89% of the company’s total outstanding debt and convertible notes effectively bear interest at fixed rates, approximately 98% is unsecured, and the weighted average interest rate is approximately 4.4%.
The market has reacted to these announcements by moving the company's shares 1.32% to a price of $12.29. For more information, read the company's full 8-K submission here.
