FCH Felcor Lodging Trust Incorporated (delisted)

FelCor Prices Senior Unsecured Notes Offering IRVING, Texas, May 17 /PRNewswire-FirstCall/ -- FelCor Lodging Trust Incorporated , the nation's second largest lodging real estate investment trust (REIT), and its subsidiary FelCor Lodging Limited Partnership (FelCor LP), today announced that FelCor LP has agreed to issue and sell, subject to certain conditions, $175 million in aggregate principal amount of senior floating rate notes due 2011 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to persons outside the United States under Regulation S of the Securities Act. The notes will be sold at par, less a sales discount, will bear interest, adjusted semi-annually, at the six-month LIBOR rate plus 4.25% and will become callable on or after December 1, 2006. The proceeds of the sale of the notes and a portion of FelCor's current excess cash will be used to fund an amended offer to purchase up to $275 million aggregate principal amount of FelCor LP's outstanding 9 1/2% senior notes due 2008 (Cusip No. 31430Q AG 2). The purpose of the offering and the related tender offer is to improve FelCor's financial leverage, reduce interest expense and extend debt maturities. To the extent that less than $175 million aggregate principal amount of 9 1/2% senior notes due 2008 are tendered, FelCor LP may not complete the offer and sale of the senior floating rate notes. The notes to be offered by FelCor LP will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to purchase these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. FelCor is the nation's second largest lodging REIT and the largest owner of full service, all-suite hotels. FelCor's consolidated portfolio is comprised of 155 hotels, located in 33 states and Canada. FelCor owns 71 upscale, all-suite hotels, and is the owner of the largest number of Embassy Suites Hotels(R) and Doubletree Guest Suites(R) hotels in the U.S. FelCor's portfolio also includes 73 hotels in the upscale and full service segments. FelCor has a current market capitalization of approximately $3.0 billion. Additional information can be found on the Company's Web site at http://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 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. DATASOURCE: FelCor Lodging Trust Incorporated CONTACT: Andrew J. Welch, Senior Vice President and Treasurer, +1-972-444-4982, or , or Monica L. Hildebrand, Vice President of Communications, +1-972-444-4917, or , or Stephen A. Schafer, Vice President of Investor Relations, +1-972-444-4912, or , all of FelCor Lodging Trust Incorporated Web site: http://www.felcor.com/

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