Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 48

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 we may extend for an additional year upon the payment of applicable fees and satisfaction of certain standard conditions. The term loan facilities consist of a $500 million term loan that matures on January 3, 2028 and a $300 million term loan that matures January 3, 2026. We have the right to increase the aggregate amount of the facilities to $1.4 billion upon the satisfaction of certain standard conditions. Interest is 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, plus an applicable margin. The applicable margin is based upon our leverage ratio, as follows: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 contains various financial covenants. A summary of the most significant covenants is as follows:Actual atCovenant March 31, 2025Maximum leverage ratio (1)60%26.0%Minimum fixed charge coverage ratio (2)1.50x3.12xSecured recourse indebtednessLess than 45% of Total Asset Value8.6%Maximum unencumbered leverage ratio60%28.4%Minimum unencumbered implied debt service coverage ratio1.20x2.67x_____________________________(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 reserves, for the most recent trailing 12 month period, to fixed charges, which is defined