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Park Hotels & Resorts Inc. Announces Term Loan Agreement for Proposed Chesapeake Acquisition

Thursday, September 05, 2019
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TYSONS, VA--Park Hotels & Resorts Inc. (“Park” or “the Company”) (NYSE:PK) today announced that it entered into a $950 million unsecured delayed draw term loan agreement (“Term Facility”) in order to help finance its previously announced proposed acquisition (“Acquisition”) of Chesapeake Lodging Trust (“Chesapeake”). The Term Facility consists of a $100 million two-year tranche (“Two-Year Tranche”) and an $850 million five-year tranche (“Five-Year Tranche”). Terms of the Term Facility are materially consistent with the Company’s outstanding corporate revolver and term loan facility.

The funding of the Term Facility is contingent upon the satisfaction of customary closing conditions related to the Acquisition. Park currently anticipates that only the $850 million Five-Year Tranche will be drawn under the Term Facility on the date of the consummation of the Acquisition. In such case, the Two-Year Tranche would be cancelled. The Term Facility was led by Bank of America, N.A., who will serve as Administrative Agent.

“I am extremely pleased with the progress we’ve made toward the completion of the proposed Chesapeake Acquisition, and entering into the Term Facility is another critical step forward in this process. We appreciate the continued support from our lending partners as we continue to grow and diversify our platform,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. “Assuming a favorable result from Chesapeake’s shareholder vote during the September 10th meeting, we remain on track to close the Acquisition by mid-to-late September.”
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