Attached files
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EX-10.1 - SUMMIT HOTEL PROPERTIES LLC | v191903_ex10-1.htm |
EX-10.2 - SUMMIT HOTEL PROPERTIES LLC | v191903_ex10-2.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): July 29,
2010
SUMMIT
HOTEL PROPERTIES, LLC
(Exact
name of registrant as specified in its charter)
South
Dakota
|
000-51955
|
20-0617340
|
(State
or other jurisdiction
|
(Commission
File Number)
|
(I.R.S.
employer identification no.)
|
of
incorporation or organization)
|
2701
South Minnesota Avenue, Suite 6, Sioux Falls, South Dakota 57105
(Address
of principal executive offices, including zip code)
Registrant’s
Telephone Number, Including Area Code: (605)
361-9566
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
Item 1.01 Entry into a Material Definitive Agreement.
First
National Bank of Omaha – Credit Pool
On July
29, 2010, Summit Hotel Properties, LLC (“Company”) entered into a Third
Amendment of First Amended and Restated Loan Agreement related to its credit
pool line of credit ("Credit Pool") with First National Bank of Omaha. The
Credit Pool is for the purpose of providing interim financing for existing,
newly acquired and constructed hotels. Each loan from the Credit Pool is
classified as either a Pool One loan or a Pool Two loan. Loans from Pool One pay
interest only for a maximum of two years. Loans from Pool Two are for a term of
five years, and principal and interest payments are based upon a twenty-year
amortization schedule. The interest rate for Pool One loans is 90-day LIBOR plus
4.0%, with a floor of 5.50%; the interest rate for Pool Two loans is 90-day
LIBOR plus 4.0%, with a floor of 5.25%. The Credit Pool carries a covenant that
the Company may not exceed an aggregate of $450 million outstanding debt without
the prior approval of the lender. We are further required to maintain a minimum
aggregate debt service coverage ratio of 1.50 to 1.00. The Third
Amendment of First Amended and Restated Loan Agreement extends the maturity date
of the Credit Pool from July 24, 2010 to August 15, 2010.
First
National Bank of Omaha – Acquisition Line
On July
29, 2010, Summit Hotel Properties, LLC (“Company”) entered into a Second
Amendment of First Amended and Restated Loan Agreement related to its
acquisition line of credit ("Acquisition Line") with First National Bank of
Omaha. The Acquisition Line is for the purpose of temporarily funding
acquisitions and construction of new hotels. The Acquisition Line carries an
interest rate at 90-day LIBOR plus 4.0%, with a floor of 5.5%. The borrowings
under the Acquisition Line are repaid as permanent financing and equity sources
for such acquisitions are secured. The principal amount of the Acquisition Line
is $28.2 million, which is roughly equivalent to the current amount outstanding
under the Acquisition Line, and amounts outstanding under letters of credit
issued by First National Bank of Omaha. The Company is restricted
from taking additional advances under the Acquisition Line. The Acquisition Line
carries a covenant that the Company may not exceed an aggregate of $450 million
outstanding debt without the prior approval of the lender. We are further
required to maintain a minimum aggregate debt service coverage ratio of 1.50 to
1.00. The Second Amendment of First Amended and Restated Loan
Agreement extends the maturity date of the Acquisition Line from July 24, 2010
to August 15, 2010.
Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The
information contained in Item 1.01 concerning the Company’s direct financial
obligations is incorporated herein by reference.
Item
9.01 Financial Statements and Exhibits.
10.1
|
Third
Amendment of First Amended and Restated Loan Agreement (Credit Pool)
between Summit Hotel Properties, LLC and First National Bank of Omaha
entered into July 29, 2010
|
10.2
|
Second
Amendment of First Amended and Restated Loan Agreement (Acquisition Line)
between Summit Hotel Properties, LLC and First National Bank of Omaha
entered into July 29, 2010
|
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
SUMMIT HOTEL PROPERTIES, LLC | |||
|
By:
|
/s/ Kerry W. Boekelheide | |
Name: Kerry W. Boekelheide | |||
Title: Chief Executive Officer | |||
Dated: July
29, 2010