Nashville, March 31 - FelCor Lodging Trust Inc. sold a $100 million add-on to its series A 7.8% perpetual convertible preferreds at $23.79, a discount to the par $25, to yield 8.375%, via joint bookrunners Bear Stearns & Co. Inc. and Citigroup Global Markets Inc.
Dividend payments will be the greater of 7.8% per year or the cash distributions on the underlying shares.
The Irving, Texas, hotel real estate investment trust said proceeds would be used for general corporate purposes, including investments in existing or additional hotel assets, retirement of debt and additional liquidity.
Terms of the deal are:
| Issuer: | FelCor Lodging Trust Inc.
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| Issue: | Series A 7.8% perpetual convertible preferreds
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| Bookrunners: | Bear Stearns & Co. Inc. and Citigroup Global Markets Inc.
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| Co-managers: | Deutsche Bank Securities and Legg Mason Wood Walker
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| Amount: | $100 million
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| Greenshoe: | $15 million
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| Maturity: | Perpetual
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| Dividend: | 7.8%
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| Price: | $23.79 (par $25)
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| Yield: | 8.375%
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| Conversion premium: | NM
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| Conversion price: | $32.25
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| Conversion ratio: | 0.7752
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| Call: | Non-callable unless shares above $32.25
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| Ratings: | Moody's: B3
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| S&P: CCC+
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| Price talk: | 8.125-8.375%
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| Pricing date: | March 30, after the close
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| Settlement date: | April 5
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| Distribution: | Registered
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