Chatham Lodging Trust, a hotel real estate investment trust, has signed a commitment letter with a group of lenders for a USD85m senior secured credit facility.

Barclays Capital and Regions Capital Markets are the joint lead arrangers for the revolving credit facility, with Barclays Bank serving as the administrative agent and Regions Bank acting as the syndication agent.

Other banks providing commitments for the credit facility include Credit Agricole Corporate and Investment Bank, UBS Investment Bank and US Bank National Association.

The revolving credit facility matures in three years and includes an accordion feature that would allow the company to increase the size of the facility to USD110m.

Borrowings will bear interest at a rate determined by a leverage-based pricing grid and will initially be set at LIBOR plus 325 basis points, subject to a Libor floor of 1.25 per cent.

"We appreciate the support of these banks, and we expect to close on the credit facility during the third quarter subject to satisfaction of customary closing conditions," says Julio Morales, Chatham's chief financial officer. "This secured line of credit will help us continue to execute our growth strategy, including the pursuit and funding of further hotel acquisitions."