Choice Hotels signs $500 million unsecured term loan maturing August 28, 2029
Choice Hotels International entered a $500 million unsecured term loan under a credit agreement with Wells Fargo Bank as administrative agent, dated August 28, 2026. The company says proceeds are expected for general corporate purposes, including working capital and debt repayment. The loan adds $500 million of direct debt and comes with covenants limiting dividends and stock repurchases, which may affect shareholder payouts.
Key points
- $500 million unsecured term loan with scheduled maturity on August 28, 2029, plus an optional one-year extension subject to lender consent
- Interest at SOFR (0.00% floor) plus 1.25%, or a base rate plus 0.25%, at the company's election
- Financial covenants require a fixed charge coverage ratio of at least 2.5 to 1.0 and a leverage ratio of not more than 4.5 to 1.0, with the fixed charge coverage requirement waived while the company holds an Investment Grade Rating
- Agreement restricts dividends and stock repurchases, and the filing lists Wells Fargo Bank, National Association as administrative agent
The filing
Written by AI on Nov 8, 2026, 1:05 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on August 28, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.