Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 60

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 closing of the Amended Credit Facility. The Company intends to prepay the mortgage loan secured by the Westin Boston Seaport District in September 2025. Following this repayment, the Company will have no debt maturities until January 2028 and its portfolio will be fully unencumbered by secured debt.As of June 30, 2025, interest was paid on the periodic advances on the revolving credit facility and amounts outstanding on the term loans at varying rates, based upon the adjusted Secured Overnight Financing Rate (“SOFR”), as defined in the Credit Agreement and Amended Credit Facility, plus an applicable margin. The applicable margin is based upon our leverage ratio, as follows:

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Leverage RatioApplicable Margin for Revolving LoansApplicable Margin for Term LoansLess than 30%1.40%1.35%Greater than or equal to 30% but less than 35%1.45%1.40%Greater than or equal to 35% but less than 40%1.50%1.45%Greater than or equal to 40% but less than 45%1.60%1.55%Greater than or equal to 45% but less than 50%1.80%1.75%Greater than or equal to 50% but less than 55%1.95%1.85%Greater than or equal to 55%2.25%2.20% The Credit Agreement and Amended Credit Facility contain various financial covenants. These financial covenants are not changed or waived by the Amended Credit Facility. A summary of the most significant covenants is as follows:Actual atCovenant June 30, 2025Maximum leverage ratio (1)60%25.7%Minimum fixed charge coverage ratio (2)1.50x3.14xSecured recourse indebtednessLess than 45% of Total Asset Value6.5%Maximum unencumbered leverage ratio60%25.5%Minimum unencumbered implied debt service coverage ratio1.20x2.94x_____________________________(1)Leverage ratio is net indebtedness, as defined in the Credit Agreement, divided by total asset value, defined in the Credit Agreement as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate. (2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Credit Agreement as EBITDA less FF&E