Latham & Watkins Advises Xenia Hotels & Resorts in US$1.375 Billion Bank and Bond Transactions
Latham & Watkins represented Xenia Hotels & Resorts, Inc. in the debut private offering of US$300 million of 6.375% senior secured notes due 2025 by XHR LP, Xenia’s operating subsidiary. Xenia, a REIT that invests primarily in uniquely positioned luxury and upper upscale hotels and resorts, owns 39 hotels across 16 US states. Xenia’s hotels are operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews and Hilton. The notes were guaranteed by Xenia Hotels & Resorts, Inc., as well as certain of the issuer’s subsidiaries, and initially secured by equity interests in subsidiaries of the issuer with properties in 17 US markets.
Latham previously represented Xenia in the successful amendment of each of its corporate credit facilities, including its US$500 million senior revolving credit facility and its four term loan facilities totaling US$575 million, to obtain relief from certain covenants. Simultaneously with the completion of the note offering, certain amendments to the credit facilities became effective to permit the application of the offering proceeds. The offering was intended to enhance Xenia’s cash position, supplement its ability to address working capital requirements and enable it to repay borrowings.
Latham harnessed an interdisciplinary team, including from its market-leading Capital Markets, Finance and Real Estate Practices, as well as its REIT and Hospitality, Gaming & Leisure Industry Groups, to advise Xenia in the transaction. The deal team was led by Chicago and Los Angeles partners Cathy Birkeland, Roderick Branch and Julian Kleindorfer, with Chicago counsel Manasi Bhattacharrya and associates Austin Arnett and Samantha Jackson. Advice was also provided on finance matters by Chicago counsel Cindy Caillavet, with associates Joseph Sung and Edwin Abundis; on real estate matters by Chicago partner Gary Axelrod, with associates Zonia Medina and Euna Park; and on investment fund matters by Chicago partner Nabil Sabki, with associate John Reinert.