Moody's reviews Interstate Hotels

Moody's Investors Service said it placed Interstate Hotels & Resorts, Inc.'s Caa1 corporate family rating and Interstate Operating, LP's Caa1 senior secured debt rating under review direction uncertain following the announcement that Interstate agreed to be acquired by a 50/50 joint venture between subsidiaries of Thayer Lodging Group and Jin Jiang Hotels.

Interstate's lenders have approved the transaction subject to certain paydowns at closing on its senior secured credit facility and on one of its non-recourse mortgage loans, the agency said.

During its review, Moody's will monitor the impact this acquisition will have on Interstate's ultimate capital structure, operating strategy, management composition and security for its senior secured credit facility.

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