Sotherly Hotels Secures $50M Credit Facility

TL;DR

SOHO just inked a $50M credit line with Apollo, maturing in 2029, to boost operations & refinance debt.

AI Summary

Sotherly Hotels Inc. (SOHO) announced on July 8, 2024, that it entered into a credit agreement for a new $50 million senior secured revolving credit facility. This facility, provided by an affiliate of Apollo Global Management, Inc., matures on July 8, 2029, and will be used for general corporate purposes and to refinance existing debt.

Why It Matters

This new credit facility provides Sotherly Hotels with significant financial flexibility, enabling them to manage their operations and refinance existing obligations, potentially improving their financial stability.

Risk Assessment

Risk Level: medium — While the new credit facility provides liquidity, the company's reliance on debt and the hospitality sector's sensitivity to economic downturns present ongoing risks.

Key Numbers

• $50 million — Senior Secured Revolving Credit Facility (Provides new liquidity and refinancing options.)
• July 8, 2029 — Maturity Date (Long-term financing provides stability.)

Key Players & Entities

• Sotherly Hotels Inc. (company) — Registrant
• SOHO (company) — Ticker Symbol
• $50 million (dollar_amount) — Senior secured revolving credit facility amount
• July 8, 2024 (date) — Date of credit agreement
• Apollo Global Management, Inc. (company) — Lender affiliate
• July 8, 2029 (date) — Maturity date of credit facility
• Sotherly Hotels LP (company) — Related entity

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value SOHO The NASDAQ Stock Mar
• $26.25 million — tial principal balance of approximately $26.25 million (the "Initial Tranche"), with an additi
• $9.49 million — "Initial Tranche"), with an additional $9.49 million available to fund a product improvement

Filing Documents

• soho-20240708.htm (8-K) — 74KB
• soho-ex99_1.htm (EX-99.1) — 12KB
• img42542370_0.jpg (GRAPHIC) — 159KB
• 0000950170-24-082298.txt ( ) — 496KB
• soho-20240708.xsd (EX-101.SCH) — 63KB
• soho-20240708_htm.xml (XML) — 12KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On July 9, 2024, the Company issued a press release announcing the transactions effected pursuant to the debt financing of the Hotel. A copy of the press release is attached to the Current Report on Form 8-K as Exhibit 99.1 and incorporated by reference herein. In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Item 7.01 (including Exhibit 99.1 hereto), shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 99.1 Press Release of Sotherly Hotels Inc. dated July 9, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized. Date: July 9, 2024 SOTHERLY HOTELS INC. By: /s/ Anthony E. Domalski Anthony E. Domalski Chief Financial Officer SOTHERLY HOTELS LP by its General Partner, SOTHERLY HOTELS INC. By: /s/ Anthony E. Domalski Anthony E. Domalski Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR