Indebtedness

Indebtedness consisted of the following (in thousands):

Indebtedness

Collateral

Maturity

Interest Rate

September 30, 2018

December 31, 2017

Secured revolving credit facility ⁽³⁾

None

November 2019

Base Rate⁽²⁾+ 1.25% to 2.50% or LIBOR⁽¹⁾ + 2.25% to 3.50%

—

TIF loan⁽⁴⁾

Courtyard Philadelphia

June 2018

12.85%

—

8,098

Mortgage loan⁽⁵⁾

Ritz-Carlton, St. Thomas

December 2018

LIBOR⁽¹⁾ + 4.95%

42,000

Mortgage loan^{(6) (7)}

Courtyard Philadelphia

February 2019

LIBOR⁽¹⁾ + 2.58%

—

277,628

Courtyard San Francisco

Marriott Seattle Waterfront

Tampa Renaissance

Mortgage loan⁽⁶⁾

Sofitel Chicago Magnificent Mile

March 2019

LIBOR⁽¹⁾+ 2.55%

—

80,000

Mortgage loan⁽⁸⁾

Pier House Resort

March 2019

LIBOR⁽¹⁾ + 2.25%

70,000

Mortgage loan⁽⁹⁾

Park Hyatt Beaver Creek

April 2019

LIBOR⁽¹⁾+ 2.75%

67,500

Mortgage loan⁽¹⁰⁾

Capital Hilton

November 2019

LIBOR⁽¹⁾ + 2.65%

187,834

190,010

Hilton La Jolla Torrey Pines

Mortgage loan⁽⁶⁾

Courtyard Philadelphia

June 2020

LIBOR⁽¹⁾ + 2.16%

435,000

—

Courtyard San Francisco

Marriott Seattle Waterfront

Sofitel Chicago Magnificent Mile

Mortgage loan

Hotel Yountville

May 2022

LIBOR⁽¹⁾ + 2.55%

51,000

Mortgage loan

Bardessono Hotel

August 2022

LIBOR⁽¹⁾+ 2.55%

40,000

Mortgage loan

Ritz-Carlton, Sarasota

April 2023

LIBOR⁽¹⁾ + 2.65%

100,000

—

993,334

826,236

Deferred loan costs, net

(7,618

)

(5,277

)

Indebtedness, net

985,716

820,959

__________________


⁽¹⁾	LIBOR rates were 2.261% and 1.564% at September 30, 2018 and December 31, 2017, respectively.


⁽²⁾	Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

⁽³⁾

Our borrowing capacity under our secured revolving credit facility is $100.0 million. We have an option, subject to lender approval, to further increase the borrowing capacity to an aggregate of $250.0 million. We may use up to $15.0 million for standby letters of credit. The secured revolving credit facility has two one-year extension options subject to advance notice, satisfaction of certain conditions and a 0.25% extension fee.


⁽⁴⁾	The TIF loan matured on June 30, 2018. See note 6.


⁽⁵⁾	This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the first was exercised in December 2017.


⁽⁶⁾	On May 23, 2018, we refinanced two mortgage loans totaling $357.6 million with a new $435.0 million mortgage loan with a two-year initial term and five one-year extension options, subject to the satisfaction of certain conditions. The new mortgage loan is interest only and bears interest at a rate of LIBOR + 2.16%.


⁽⁷⁾	A portion of this mortgage loan at December 31, 2017 relates to the Tampa Renaissance, which was sold on June 1, 2018. See note 5.


⁽⁸⁾	This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in March 2018.


⁽⁹⁾	This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions.


⁽¹⁰⁾	This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions.

On March 31, 2017, in connection with the acquisition of the Park Hyatt Beaver Creek, we completed the financing of a $67.5 million mortgage loan. This mortgage loan is interest only and provides for a floating interest rate of LIBOR + 2.75%. The stated maturity date of the mortgage loan is April 2019, with three one-year extension options, subject to the satisfaction of certain conditions. The mortgage loan is secured by the Park Hyatt Beaver Creek.

On May 11, 2017, in connection with the acquisition of the Hotel Yountville, we completed the financing of a $51.0 million mortgage loan. This mortgage loan is interest only and provides for a floating interest rate of LIBOR + 2.55%. The stated maturity date of the mortgage loan is May 2022. The mortgage loan is secured by the Hotel Yountville.

On August 18, 2017, we refinanced our existing $40.0 million mortgage loan with a final maturity date in December 2020 with a new $40.0 million mortgage loan that is interest only, provides for a floating interest rate of LIBOR + 2.55% and has a stated maturity date of August 2022. The mortgage loan is secured by the Bardessono Hotel.

On April 4, 2018, in connection with the acquisition of the 266-room Ritz-Carlton, Sarasota in Sarasota, Florida, the Company completed the financing of a $100.0 million mortgage loan. This mortgage loan provides for a floating interest rate of LIBOR + 2.65%. The mortgage loan is interest only until July 1, 2021 and then amortizes 1% annually for the remaining term. The stated maturity is April 2023.

On May 23, 2018, the Company refinanced two mortgage loans totaling $357.6 million with a new $435.0 million mortgage loan with a two-year initial term and five one-year extension options subject to the satisfaction of certain conditions. As a result of the refinance the Tampa Renaissance became unencumbered. The new mortgage loan is interest only and bears interest at a rate of LIBOR + 2.16%. The loan is secured by four hotels: Seattle Marriott Waterfront, San Francisco Courtyard Downtown, Philadelphia Courtyard Downtown and Sofitel Chicago Magnificent Mile.

We are required to maintain certain financial ratios under our secured revolving credit facility. If we violate covenants in any debt agreement, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms, if at all. Violations of certain debt covenants may result in our inability to borrow unused amounts under our line of credit, even if repayment of some or all of our borrowings is not required. The assets of certain of our subsidiaries are pledged under non-recourse indebtedness and are not available to satisfy the debts and other obligations of the consolidated group. As of September 30, 2018, we were in compliance in all material respects with all covenants or other requirements set forth in our debt agreements as amended.