Interstate Hotels in talks with lenders on extending loan maturity

By Sara Rosenberg

New York, March 31 - Interstate Hotels & Resorts Inc. has begun discussions with its bank group regarding the extension of its credit facility's March 2010 maturity and hopes to have an amendment completed prior to June 30, according to a news release.

In addition, the company said that it received a waiver through June 30 under the facility covering the requirement to maintain listing on the New York Stock Exchange.

NYSE suspended trading of Interstate Hotel's stock on March 12 after the company failed to meet the minimum $15 million market capitalization requirement.

As part of the waiver, pricing on the facility was increased by 75 basis points to Libor plus 350 bps, the size was decreased to $173.3 million from $198 million, and lenders were paid a 50 bps consent fee.

Currently, the company has $10 million of borrowing capacity under the facility, of which $6 million is available through June 30. There are no plans to draw on the facility during the waiver period.

Interstate Hotels is an Arlington, Va.-based hotel real estate investor and independent management company.

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