AUSTIN--Summit Hotel Properties Inc. has closed on a new $125-million seven-year unsecured term loan facility.

“We are pleased to announce the closing of this $125 million long-term debt facility,” said Daniel P. Hansen, president and CEO, in a release. “The support of our credit partners is a validation of the quality of our portfolio and execution of our strategy.”

Proceeds from the term loan have been used to repay outstanding borrowings under the company's senior unsecured revolving credit facility. At the company's election, borrowings under the term loan bear interest at a floating rate plus a spread over either the Eurodollar rate or the base rate. The spread depends upon the company's leverage ratio and ranges from 1.80 to 2.60 percent for Eurodollar Rate based borrowings and from 0.80 to 1.60 percent for base rate based borrowings. The term loan has an accordion option that provides the company with the ability to increase the term loan capacity to $200 million, subject to customary conditions.