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Debt (Tables) | 9 Months Ended
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Sep. 30, 2021
Debt Disclosure [Abstract] |
Schedule of Debt | The Company's debt consisted of the following (in thousands):
| September 30, 2021 |  | December 31, 2020
2029 Senior Notes, net | $ | 494,421 |  |  | $ | — |
2026 Senior Notes, net | 492,476 |  |  | — |
2025 Senior Notes, net | — |  |  | 495,759 |
Revolver | 200,000 |  |  | 400,000 |
Term Loans, net | 814,659 |  |  | 1,168,304 |
Mortgage loans, net | 379,718 |  |  | 523,668 |
Debt, net | $ | 2,381,274 |  |  | $ | 2,587,731 |
Schedule of Senior Notes | The Company's $475.0 million senior notes due 2025 are referred to as the "2025 Senior Notes." The Company's 2025 Senior Notes consisted of the following (in thousands):
|  |  |  |  |  | Outstanding Borrowings at
|  | Interest Rate |  | Maturity Date |  | September 30, 2021 |  | December 31, 2020
2025 Senior Notes (1) (2) |  | 6.00% |  | June 2025 |  | $ | — |  |  | $ | 495,759 |
(1)In September 2021, the Company redeemed the 2025 Senior Notes and paid a redemption premium of $9.5 million using the net proceeds from the issuance of the 2029 Senior Notes. The redemption premium is included in the gain on extinguishment of indebtedness, net, in the accompany consolidated statements of operations and comprehensive loss. (2)The 2025 Senior Notes included $20.9 million at December 31, 2020 related to acquisition related fair value adjustments on the 2025 Senior Notes. As of the date of redemption of the 2025 Senior Notes, the carrying value of the acquisition related fair value adjustment was $17.7 million. As a result of the redemption, this amount was written off and is included in the gain on extinguishment of indebtedness, net, in the accompany consolidated statements of operations and comprehensive loss.
Schedule of Revolver and Term Loans | The Company's credit agreements consisted of the following (in thousands):
|  |  |  |  |  | Outstanding Borrowings at
|  | Interest Rate at September 30, 2021 (1) |  | Maturity Date |  | September 30, 2021 |  | December 31, 2020
Revolver (2) |  | 3.53% |  | May 2024 |  | $ | 200,000 |  |  | $ | 400,000 |
$400 Million Term Loan Maturing 2023 (3) |  | 4.73% |  | January 2023 (7) |  | 203,944 |  |  | 400,000 |
$225 Million Term Loan Maturing 2023 (4) |  | 4.72% |  | January 2023 (8) |  | 114,718 |  |  | 225,000 |
$150 Million Term Loan Maturing 2023 (5) |  | 4.18% |  | June 2023 |  | 100,000 |  |  | 150,000 |
$400 Million Term Loan Maturing 2025 |  | 4.45% |  | May 2025 |  | 400,000 |  |  | 400,000 |
|  |  |  |  |  | 1,018,662 |  |  | 1,575,000 |
Deferred financing costs, net (6) |  |  |  |  |  | (4,003) |  |  | (6,696) |
Total Revolver and Term Loans, net |  |  |  |  |  | $ | 1,014,659 |  |  | $ | 1,568,304 |
(1)Interest rate at September 30, 2021 gives effect to interest rate hedges. (2)At September 30, 2021 and December 31, 2020, there was $400.0 million and $200.0 million of remaining capacity on the Revolver, respectively. The Company also has the ability to extend the maturity date for an additional one year period ending May 2025 if certain conditions are satisfied. (3)The Company utilized $196.1 million of the proceeds from the issuance of the 2026 Senior Notes to reduce the outstanding principal balance of this term loan. (4)The Company utilized $110.3 million of the proceeds from the issuance of the 2026 Senior Notes to reduce the outstanding principal balance of this term loan. (5)Pursuant to the terms under the Company's credit agreements, the Company utilized $20.8 million of the proceeds from hotel dispositions and $29.2 million of the proceeds from the issuance of the 2026 Senior Notes to reduce the outstanding principal balance of this term loan. In addition, the Company has the option to extend the maturity one additional year to June 2024. (6)Excludes $3.2 million and $4.1 million as of September 30, 2021 and December 31, 2020, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets. (7)In September 2021, the Company amended this term loan to include a one-year extension option for approximately $151.7 million of the principal balance. The exercise of the one-year extension option will be at the Company's discretion, subject to certain conditions. (8)In September 2021, the Company amended this term loan to include a one-year extension option for approximately $73.0 million of the principal balance. The exercise of the one-year extension option will be at the Company's discretion, subject to certain conditions.
Schedule Of Debt Instrument Covenants | A summary of the various restrictive covenants for the 2029 Senior Notes are as follows:
|  | Covenant |  | Compliance
Maintenance Covenant |  |  |  |
Unencumbered Asset to Unencumbered Debt Ratio |  | > 150.0% |  | Yes
Incurrence Covenants |  |  |  |
Consolidated Indebtedness less than Adjusted Total Assets |  | < .65x |  | Yes
Consolidated Secured Indebtedness less than Adjusted Total Assets |  | < .45x |  | Yes
Interest Coverage Ratio |  | > 1.5x |  | No
A summary of the various restrictive covenants for the 2026 Senior Notes are as follows:
|  | Covenant |  | Compliance
Maintenance Covenant |  |  |  |
Unencumbered Asset to Unencumbered Debt Ratio |  | > 150.0% |  | Yes
Incurrence Covenants |  |  |  |
Consolidated Indebtedness less than Adjusted Total Assets |  | < .65x |  | Yes
Consolidated Secured Indebtedness less than Adjusted Total Assets |  | < .45x |  | Yes
Interest Coverage Ratio |  | > 1.5x |  | No
The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows:
|  | Covenant |  | Compliance
Leverage ratio (1) |  | <= 7.00x |  | N/A (3)
Fixed charge coverage ratio (2) |  | >= 1.50x |  | N/A (3)
Secured indebtedness ratio |  | <= 45.0% |  | N/A (3)
Unencumbered indebtedness ratio |  | <= 60.0% |  | N/A (3)
Unencumbered debt service coverage ratio |  | >= 2.00x |  | N/A (3)
Maintain minimum liquidity level |  | >= $150.0 million |  | Yes
(1)Leverage ratio is net indebtedness, as defined in the Revolver and Term Loan agreements, to corporate earnings before interest, taxes, depreciation, and amortization ("EBITDA"), as defined in the Revolver and Term Loan agreements. (2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Revolver and Term Loan agreements as EBITDA less furniture, fixtures and equipment ("FF&E") reserves, to fixed charges, which is generally defined in the Revolver and Term Loan agreements as interest expense, all regularly scheduled principal payments, preferred dividends paid, and cash taxes paid. (3)The Company is not currently required to comply with these covenants, see details below.
Schedule of mortgage loans | The Company's mortgage loans consisted of the following (in thousands):
|  |  |  |  |  |  |  |  | Outstanding Borrowings at
|  | Number of Assets Encumbered |  | Interest Rate at September 30, 2021 (1) |  | Maturity Date |  | September 30, 2021 |  | December 31, 2020
Mortgage loan (2) |  | 7 |  | 3.30 | % |  |  | April 2022 | (6) | $ | 200,000 |  |  | $ | 200,000 |
Mortgage loan (2) |  | 3 |  | 2.53 | % |  |  | April 2024 | (6) | 96,000 |  |  | 96,000 |
Mortgage loan (2) |  | 4 |  | 2.84 | % |  |  | April 2024 | (6) | 85,000 |  |  | 85,000 |
Mortgage loan (3) |  | 1 |  | — |  |  |  | June 2022 | (7) | — |  |  | 30,332 |
Mortgage loan (4) |  | 3 |  | — |  |  |  | October 2022 | (7) | — |  |  | 86,775 |
Mortgage loan (5) |  | 1 |  | — |  |  |  | October 2022 | (8) | — |  |  | 27,972 |
|  | 19 |  |  |  |  |  |  | 381,000 |  |  | 526,079 |
Deferred financing costs, net |  |  |  |  |  |  |  |  | (1,282) |  |  | (2,411) |
Total mortgage loans, net |  |  |  |  |  |  |  |  | $ | 379,718 |  |  | $ | 523,668 |
(1)Interest rate at September 30, 2021 gives effect to interest rate hedges. (2)The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3)Includes $0.3 million at December 31, 2020 related to a fair value adjustment on a mortgage loan. (4)Includes $0.9 million at December 31, 2020 related to fair value adjustments on the mortgage loans. (5)Includes $0.3 million at December 31, 2020 related to a fair value adjustment on the mortgage loan. (6)The mortgage loan provides two one year extension options. (7)In June 2021, the Company paid off the mortgage loan(s) in full and paid approximately $5.7 million in prepayment premiums using the proceeds from the issuance of the 2026 Senior Notes. (8)In July 2021, the Company paid off the mortgage loan in full and paid approximately a $1.3 million prepayment premium using the proceeds from the issuance of the 2026 Senior Notes.
Schedule of Interest Expense Components | The components of the Company's interest expense consisted of the following (in thousands):
| For the three months ended September 30, |  | For the nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Senior Notes | $ | 11,747 |  |  | $ | 5,942 |  |  | $ | 24,374 |  |  | $ | 17,825 |
Revolver and Term Loans | 11,079 |  |  | 15,730 |  |  | 42,281 |  |  | 39,087 |
Mortgage loans | 2,580 |  |  | 4,368 |  |  | 10,328 |  |  | 13,483 |
Amortization of deferred financing costs | 1,527 |  |  | 1,147 |  |  | 4,211 |  |  | 3,214 |
Undesignated interest rate swaps | — |  |  | (1,203) |  |  | — |  |  | (18) |
Total interest expense | $ | 26,933 |  |  | $ | 25,984 |  |  | $ | 81,194 |  |  | $ | 73,591 |

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