FelCor Establishes Line of Credit
March 07 2011 - 8:28AM
Business Wire
FelCor Lodging Trust Incorporated (NYSE: FCH) today announced
that it has closed a new $225 million secured line of credit with a
group of seven banks. J.P. Morgan and BofA Merrill Lynch acted as
joint lead arrangers. J.P. Morgan is serving as administrative
agent for the bank group. The revolving line of credit bears
interest of LIBOR (no floor) plus 450 basis points and matures in
August 2014 (FelCor has a one-year extension option to 2015,
subject to certain conditions).
At closing, FelCor repaid two secured loans, totaling $198.3
million and $29 million, with a combination of cash on hand and
funds drawn under its new line of credit. The repaid loans would
have matured in 2013 and 2012 (including extensions), respectively,
and were secured by mortgages on 11 hotels. Those same hotels now
secure repayment of amounts outstanding under the line of credit.
The line of credit is guaranteed by FelCor. As long as FelCor’s 10%
senior notes remain outstanding, the line of credit imposes no
corporate covenants; otherwise, the line of credit adopts the same
corporate covenants as applicable currently to those notes.
“The terms of the new line of credit are more favorable than the
repaid loans, with a lower interest rate, an extended maturity date
and the efficiency of a revolving line of credit, which provides
greater flexibility to manage our balance sheet while negotiating
and consummating strategic hotel acquisitions,” stated Andrew J.
Welch, FelCor's Executive Vice President and Chief Financial
Officer.
FelCor, a real estate investment trust, is the nation's largest
owner of upper-upscale, all-suite hotels. FelCor owns interests in
82 properties located in major markets throughout 22 states.
FelCor's diversified portfolio of hotels and resorts are flagged
under global brands, such as Doubletree ®, Embassy Suites Hotels®,
Hilton®, Fairmont®, Marriott®, Renaissance®, Sheraton®, Westin® and
Holiday Inn®. Additional information can be found on the Company's
Web site at www.felcor.com.
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