What is the total long-term debt for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
Long-Term Debt
$750 million Revolving Credit Facility
In April 2022, the Company entered into the Third Amendment to the credit agreement dated May 30, 2018 ("Third Amendment") which amended its originafive-year $750 million revolver to extend the term to April 2027. The benchmark rate applicable to the revolver has changed from LIBOR to Secured Overnight Funding Rate ("SOFR"). The revolver is subject to an interest rate equal to, at the Company's option, either (i) a base rate plus a margin ranging from 0.50% to 1.00% or (ii) SOFR, plus a margin ranging from 1.50% to 2.00% and an additional 0.10% SOFR adjustment, in either case based upon the total leverage ratio of the Company and its restricted subsidiaries. The revolver is subject to the same prepayment provisions and covenants applicable to the previous revolver.
(a) The carrying amount of the term loans and senior unsecured notes are net of deferred debt issuance costs of $ 13 million and $ 16 million as of December 31, 2024 and 2023, respectively. The carrying amount of the term loan B is net of unamortized discounts of $5 million as of both December 31, 2024 and 2023.
(b) Weighted average interest rates are based on the stated interest rate for the year-to-date periods and include the effects from hedging.
The Company had $88 million and $160 million of outstanding borrowings on its revolving credit facility as of December 31, 2024 and 2023, respectively. Such borrowings are included within long-term debt on the Consolidated Balance Sheet.
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Hawthorn Suites By Wyndham's parent company, Wyndham Hotels & Resorts, Inc., has a $750 million Revolving Credit Facility. This credit agreement, which was amended in April 2022, extends the term to April 2027. The interest rate is based on either a base rate plus a margin ranging from 0.50% to 1.00%, or the Secured Overnight Funding Rate (SOFR) plus a margin ranging from 1.50% to 2.00%, with an additional 0.10% SOFR adjustment, depending on the company's total leverage ratio.
As of December 31, 2024, Wyndham Hotels & Resorts had $88 million in outstanding borrowings on its revolving credit facility, which is classified as long-term debt on the Consolidated Balance Sheet. In comparison, the outstanding borrowings were $160 million as of December 31, 2023. The term loans and senior unsecured notes are reported net of deferred debt issuance costs, which were $13 million as of December 31, 2024, and $16 million as of December 31, 2023. The term loan B is also net of unamortized discounts of $5 million as of both December 31, 2024 and 2023.
For a prospective Hawthorn Suites By Wyndham franchisee, understanding the debt structure of the parent company can provide insights into its financial stability and ability to support the franchise network. The availability of a significant credit facility like the $750 million revolver suggests that Wyndham Hotels & Resorts has access to capital, which could be used for strategic initiatives, brand development, or to support franchisees during challenging times. However, it's also important to monitor the company's leverage ratio and borrowing levels to assess its overall financial health and risk profile.