FelCor Commences Consent Solicitation for Amendment to Indenture Governing Its 10% Senior Secured Notes Due 2014
October 07 2009 - 6:03PM
Business Wire
FelCor Lodging Trust Incorporated (NYSE: FCH) (“FelCor”) and its
subsidiary, FelCor Lodging Limited Partnership (“FelCor LP”), today
announced that on October 7, 2009, FelCor Escrow Holdings, L.L.C.
(“FelCor Escrow”), a wholly-owned subsidiary of FelCor LP,
commenced a solicitation of consents to a proposed amendment to the
indenture governing its 10% Senior Secured Notes due 2014 (CUSIP
Nos. 31430QAZ0 and U31522AK8) (the “New Notes”).
The consent solicitation is being made pursuant to a
Solicitation Letter dated October 6, 2009, and related letter of
consent. The consent solicitation expires at 5:00 p.m., New York
City time, on October 13, 2009 (the “Expiration Date”), unless
extended or earlier terminated by FelCor Escrow. The proposed
amendment to the indenture will provide additional flexibility with
respect to the incurrence of indebtedness by FelCor LP, once FelCor
LP has assumed the obligations under the indenture. The
supplemental indenture containing the proposed amendment will be
executed promptly following the receipt of the consents required to
approve the proposed amendment.
FelCor LP has made tender offers to purchase all of its
outstanding 8 ½% Senior Notes due 2011 (“8 ½% Notes”) and Senior
Secured Floating Rate Notes due 2011 (“Floating Rate Notes”). The
net proceeds of the New Notes, which are currently held in escrow,
will be used to purchase the 8 ½% Notes, the Floating Rate Notes
and for general corporate purposes. However, the sale of the New
Notes by FelCor LP was subject to the consummation of the tender
offers, which are conditioned upon the valid tenders of at least
90% of the outstanding 8 ½% Notes. Because this condition was
neither satisfied nor waived by the close of the offer and sale of
the New Notes, the New Notes were issued by FelCor Escrow on
October 1, 2009. Upon the successful consummation of the tender
offers, FelCor LP will assume all of the rights and obligations
under the indenture governing the New Notes. As of today,
approximately 69% of the 8 ½% Notes and more than 99% of the
Floating Rate Notes have been validly tendered.
The terms and conditions of the consent solicitation are set
forth in the Solicitation Letter and related materials.
J.P. Morgan Securities Inc. is acting as Solicitation Agent for
the consent solicitation. Copies of the documents can be obtained
from, and questions concerning the consent solicitation may be
directed to, J.P. Morgan at (212) 270-3994 (collect) or (800)
245-8812 (toll free).
This press release is not a solicitation of consents, which may
be made only pursuant to the terms of the Solicitation Letter and
related letter of consent. Those documents should be consulted for
additional information regarding delivery procedures and the
conditions for the consent solicitation.
FelCor, a real estate investment trust, is the nation’s largest
owner of upper upscale, all-suite hotels. FelCor owns interests in
87 hotels and resorts, located in 23 states and Canada. FelCor’s
portfolio consists mostly of upper upscale hotels, which are
flagged under global brands - Embassy Suites Hotels®, Doubletree®,
Hilton®, Marriott®, Renaissance®, Sheraton®, Westin® and Holiday
Inn®. Additional information can be found on the Company’s Web site
at www.felcor.com.
With the exception of historical information, the matters
discussed in this news release include “forward-looking statements”
within the meaning of the federal securities laws. Forward-looking
statements are not guarantees of future performance. Numerous risks
and uncertainties, and the occurrence of future events, may cause
actual results to differ materially from those currently
anticipated. Certain of these risks and uncertainties are described
in greater detail in our filings with the Securities and Exchange
Commission. Although we believe our current expectations to be
based upon reasonable assumptions, we can give no assurance that
our expectations will be attained or that actual results will not
differ materially. We undertake no obligation to update any
forward-looking statement to conform the statement to actual
results or changes in our expectations.
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