Latham & Watkins Advises Xenia Hotels & Resorts in US$998 Million Bank and Bond Transactions
Latham & Watkins represented Xenia Hotels & Resorts, Inc. in a tack-on offering of US$200 million of 6.375% senior secured notes due 2025 by XHR LP, Xenia’s operating subsidiary. The notes will form part of the same series of senior secured notes that Xenia issued in its US$300 million debut private offering earlier this year.
Xenia, a REIT that invests primarily in uniquely positioned luxury and upper upscale hotels and resorts, owns hotels across 16 US states that 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. Xenia intends to use the proceeds from the offering to repay existing debt.
Concurrently, Latham represented Xenia in the successful amendment of certain of its corporate credit facilities, including its US$523 million senior revolving credit facility and two term loan facilities totaling US$275 million, to increase the aggregate commitments under the revolving credit facility, extend the maturity of certain of the facilities and obtain extended relief from certain covenants.
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 Roderick Branch, Cathy Birkeland, and Julian Kleindorfer, with Chicago counsels Cindy Caillavet and Manasi Bhattacharyya, and associates Austin Arnett, Samantha Jackson, Ryan Hudson and Edwin Abundis. Advice was also provided 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.