FelCor Lodging Trust gets $225 million revolving credit line due 2014

By Angela McDaniels

Tacoma, Wash., March 7 - FelCor Lodging Trust Inc. closed a new $225 million secured line of credit due August 2014, according to a company news release.

JPMorgan and Bank of America Merrill Lynch are the joint lead arrangers, and JPMorgan is the administrative agent.

The interest rate is Libor plus 450 basis points. There is no Libor floor.

FelCor has the option to extend the maturity by one year, subject to certain conditions.

At closing, FelCor repaid two secured loans totaling $198.3 million and $29 million with a combination of cash on hand and funds drawn under the new line of credit. The repaid loans would have matured in 2013 and 2012, including extensions, respectively, and were secured by mortgages on 11 hotels. Those same hotels now secure the new line of credit.

As long as FelCor's 10% senior notes remain outstanding, the line of credit has no corporate covenants. Otherwise, the line of credit adopts the same corporate covenants that are currently applicable to the notes.

"The terms of the new line of credit are more favorable than the repaid loans, with a lower interest rate, an extended maturity date and the efficiency of a revolving line of credit, which provides greater flexibility to manage our balance sheet while negotiating and consummating strategic hotel acquisitions," executive vice president and chief financial officer Andrew Welch said in the news release.

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

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