Service Properties Trust entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders, or the Credit Agreement, governing a $650 million secured revolving credit facility. The facility replaces the previous $800 million revolving credit facility, which had a maturity date of July 15, 2023. The maturity date of the new facility is June 29, 2027, and, subject to the payment of an extension fee and meeting certain other conditions, company have an option to further extend the stated maturity date of the new facility by two additional six-month periods.

Company can borrow, repay and reborrow funds available under the new facility until maturity, and no principal repayment is due until maturity. Interest payable on drawings under the new facility will be based on SOFR plus a margin ranging from 1.50% to 3.00% based on the leverage ratio, as defined in the Credit Agreement, and is initially 2.50%. The new facility will be secured by 69 properties, including 66 hotels and three net lease properties.

In connection with the new facility, company and certain of the subsidiaries, or the Pledgors, entered into an amended and restated pledge agreement in favor of Wells Fargo Bank, National Association, in its capacity as administrative agent, or the Pledge Agreement. Pursuant to the Pledge Agreement, the Pledgors pledged all their respective equity interests in certain of the direct and indirect subsidiaries as collateral for all loans and other obligations under the new facility. The Credit Agreement contains a number of covenants, including covenants that require company to maintain certain financial ratios and restrict the ability to make distributions under certain circumstances.

Certain of these covenants and related definitions, among other provisions, were modified from the previous agreement pursuant to the Credit Agreement. The Credit Agreement permits acceleration of payment of all amounts outstanding thereunder upon the occurrence and continuation of specified events of default, such as a change of control of us, which includes The RMR Group LLC ceasing to act as the sole business manager.