FelCor Lodging Trust gets $200 million term loan led by JPMorgan

By Sara Rosenberg

New York, June 15 - FelCor Lodging Trust Inc. closed on a new $200 million secured term loan that, including two extension options, matures in 2013, according to a news release.

JPMorgan acted as the lead arranger and administrative agent on the deal, which is non-recourse to the company.

Pricing on the loan is Libor plus 350 basis points.

Security is nine hotels, representing 2,331 guest rooms.

Proceeds from the loan will be used for general corporate purposes, including repayment of outstanding obligations totaling $128 million under the company's line of credit, which was terminated.

"This transaction allows us to terminate our line of credit, thereby eliminating restrictive financial covenants and increasing our flexibility to encumber other hotels. Equally important, this new loan extends our maturity profile and provides additional liquidity in the form of cash on hand. We are now focused on refinancing debt maturing in 2010 and 2011," said Andrew J. Welch, executive vice president and chief financial officer, in the release.

FelCor is an Irving, Texas-based real estate investment trust that focuses on upper upscale, all-suite hotels.

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