June 7, 2010
Firm assists DiamondRock Hospitality Company in two major acquisitions and the extension and restructuring of its unsecured corporate credit facility.
Willkie is representing DiamondRock Hospitality Company in two major acquisitions and the extension and restructuring of its unsecured corporate credit facility. DiamondRock purchased a $69 million senior note secured by the Allerton Hotel, located on the Magnificent Mile in Chicago, IL. The senior loan is in foreclosure and DiamondRock is pursuing a "loan to own" strategy to acquire ownership of the hotel. DiamondRock also recently entered into a purchase agreement to acquire the Minneapolis Hilton, an 800-room hotel located in downtown Minneapolis, for $152 million. Willkie is also in the process of finalizing and closing for DiamondRock an amendment and restatement of a $200 million unsecured credit facility with Wells Fargo as lead agent, which will include a $30 million letter of credit facility. This arrangement will provide DiamondRock with additional flexibility to pursue and finance new acquisitions in an otherwise credit-constrained environment. DiamondRock is a lodging industry REIT that owns 20 premium hotels throughout the country. Partner Steven Klein handled the representation, with assistance from associate Daniel Backer on the hotel acquisitions, and from partner William Dye and associate David Drewes on the credit facility.