Pebblebrook Hotel Trust Announces Successful Amendments of Credit Agreements to Extend Waivers and Provides Update on Recent Operating Performance

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that on February 18, 2021, it had successfully amended the agreements governing its outstanding debt, including its $650.0 million senior unsecured revolving credit facility, $1.6 billion of term loans and working capital facilities, and $100.0 million private placement senior notes. In addition, the maturity of approximately $21.0 million of the Company’s debt was extended from November 2021 to November 2022.

As amended, the Company’s credit agreements and related documents waive all existing financial covenants through the end of the fourth quarter of 2021 with most existing financial covenants waived through the end of the first quarter of 2022, with substantially less-restrictive covenants through the end of the first quarter of 2023. Highlights of the amended agreements include:

• Continued ability to pay quarterly preferred equity dividend payments and a $0.01 per share quarterly common dividend (or higher if required to maintain REIT status) during the waiver period so long as the Company is in compliance with all loan agreements;
• Increased flexibility to complete up to $500.0 million of new acquisitions and reinvest up to $500.0 million from asset sales;
• Expanded ability to retain capital from debt and equity issuances for liquidity purposes during the waiver period; and
• Ability to complete up to $155.0 million of capital improvements and redevelopment projects through the end of the waiver period.

“We are extremely appreciative for the continued support we’ve received from our entire lender group throughout this unprecedented period,” said Raymond D. Martz, Chief Financial Officer for Pebblebrook Hotel Trust. “The new amendment and waiver extensions provide us with increased investment capital to execute on acquisition and investment opportunities in the near future, as well as the capacity to commence several redevelopment projects within our portfolio. In addition, we have more liquidity today than we did before the COVID-19 pandemic began, which is very encouraging.”

Update on Recent Operating Performance

The Company also provided an update on its recent operating performance and updated balance sheet following the February 2021 offering of $250.0 million aggregate principal amount of additional convertible senior notes. Please visit http://investor.pebblebrookhotels.com/Presentations to view the updated investor presentation the Company issued on its website with these details.