Host Hotels & Resorts (HHR) closed on a $500 million term loan by exercising the accordion feature of its existing credit facility. The company said the closing of this term loan increases the company’s credit facility to $2 billion, which is comprised of a $1 billion revolver and two $500 million term loans.

HHR said the term loan was arranged by Merrill Lynch, J.P. Morgan Securities and Wells Fargo Securities, as joint lead arrangers and joint book runners.

The term loan has a five-year maturity and the interest rate spread depends on the company’s unsecured debt ratings. The maturity date on the revolver and existing term loan remains unchanged. Based on the company’s current unsecured debt rating, the term loan has a floating interest rate of LIBOR plus 110 basis points.

At closing, the company drew down $300 million on the term loan and maintains the option to draw down all or a portion of the remaining $200 million within 180 days post-closing. Proceeds from the initial $300 million draw of the term loan will be used to repay current amounts outstanding on the revolver.