Indebtedness

Indebtedness consisted of the following (in thousands):

Indebtedness

Collateral

Maturity

Interest Rate

September 30, 2019

December 31, 2018

Secured revolving credit facility ⁽³⁾

Equity

November 2019

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

—

Mortgage loan ⁽⁴⁾

Capital Hilton

November 2019

LIBOR⁽¹⁾ + 2.65%

—

187,086

Hilton La Jolla Torrey Pines

Mortgage loan ⁽⁵⁾

Ritz-Carlton, St. Thomas

December 2019

LIBOR ⁽¹⁾ + 4.95%

—

42,000

Mortgage loan ⁽⁶⁾

Pier House Resort

March 2020

LIBOR ⁽¹⁾ + 2.25%

—

70,000

Mortgage loan ⁽⁷⁾

Park Hyatt Beaver Creek

April 2020

LIBOR ⁽¹⁾+ 2.75%

67,500

Mortgage loan ⁽⁸⁾

The Notary Hotel

June 2020

LIBOR ⁽¹⁾ + 2.16%

435,000

Courtyard San Francisco Downtown

Sofitel Chicago Magnificent Mile

Marriott Seattle Waterfront

Mortgage loan ⁽⁵⁾

Ritz-Carlton, St. Thomas

August 2021

LIBOR ⁽¹⁾ + 4.95%

42,500

—

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

Mortgage loan

Ritz-Carlton, Lake Tahoe

January 2024

LIBOR ⁽¹⁾+ 2.10%

54,000

—

Mortgage loan ⁽⁴⁾

Capital Hilton

February 2024

LIBOR ⁽¹⁾+ 1.70%

195,000

—

Hilton La Jolla Torrey Pines

Mortgage loan ⁽⁶⁾

Pier House Resort

September 2024

LIBOR ⁽¹⁾ + 1.85%

80,000

—

1,065,000

992,586

Deferred loan costs, net

(7,533

)

(6,713

)

Indebtedness, net

1,057,467

985,873

__________________


⁽¹⁾	LIBOR rates were 2.016% and 2.503% at September 30, 2019 and December 31, 2018, 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, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.


⁽³⁾	Our borrowing capacity under our secured revolving credit facility was $100.0 million at September 30, 2019. See note 19.


⁽⁴⁾	On January 22, 2019, we refinanced this mortgage loan with an outstanding balance of $186.8 million with a new $195.0 million mortgage loan with a five-year term. The new mortgage loan is interest only and bears interest at a rate of LIBOR + 1.70%.


⁽⁵⁾	On August 5, 2019, we amended this mortgage loan totaling $42.0 million. The amended mortgage loan totaling $42.5 million has a two-year initial term and three one-year extension options, subject to the satisfaction of certain conditions. The amended mortgage loan is interest only and bears interest at a rate of LIBOR + 4.95%.


⁽⁶⁾	On September 30, 2019, we refinanced this mortgage loan totaling $70.0 million with a new $80.0 million mortgage loan with a five-year term. The new mortgage loan is interest only and bears interest at a rate of LIBOR + 1.85%.


⁽⁷⁾	This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the first was exercised in April 2019.


⁽⁸⁾	This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions.

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 an 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 with an outstanding balance of $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: The Notary Hotel, Marriott Seattle Waterfront, Courtyard San Francisco Downtown and Sofitel Chicago Magnificent Mile.

On January 15, 2019, in connection with the acquisition of the 170-room Ritz-Carlton, Lake Tahoe located in Truckee, California, the Company completed the financing of a $54.0 million mortgage loan. This mortgage loan provides for an interest rate of LIBOR + 2.10%. The mortgage loan is interest only and has a five year term.

On January 22, 2019, the Company refinanced its existing mortgage loan with an outstanding balance of approximately $186.8 million and a final maturity date in November 2021 with a new $195.0 million mortgage loan that is interest only, bears interest at a rate of LIBOR + 1.70% and has a five-year term. The mortgage loan is secured by the same two hotels: the Capital Hilton and Hilton La Jolla Torrey Pines. These two hotels are held in a joint venture in which we have a 75% equity interest.

On August 5, 2019, the Company amended its mortgage loan with an outstanding balance of $42.0 million with a new $42.5 million mortgage loan that is interest only, bears interest at a rate of LIBOR + 4.95% and has a two-year initial term with three one-year extension options, subject to the satisfaction of certain conditions. The mortgage loan is secured by the Ritz-Carlton St. Thomas.

On September 30, 2019, the Company refinanced its mortgage loan with an outstanding balance of $70.0 million with a new $80.0 million mortgage loan that is interest only, bears interest at a rate of LIBOR + 1.85% and has a five-year term with no extension options, subject to the satisfaction of certain conditions. The mortgage loan is secured by the Pier House Resort.

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, 2019, we were in compliance in all material respects with all covenants or other requirements set forth in our debt agreements as amended.