FelCor Lodging inks $140 million term loan at Libor plus 250 bps

By Toni Weeks

San Luis Obispo, Calif., July 24 – FelCor Lodging Trust Inc. announced that it has closed on a $140 million term loan.

Borrowings will bear interest at Libor plus 250 basis points with no Libor floor.

The loan is due in 2017 and may be extended for up to two years.

The term loan may be prepaid and is secured by three properties.

Proceeds will be used, along with cash on hand and a draw from the company’s line of credit, to redeem its remaining $234 million of 10% senior secured notes, which are due in August 2014.

FelCor will subsequently use proceeds from asset sales to repay debt and complete its balance sheet restructuring.

“We continue to improve our balance sheet significantly by enhancing our maturity profile, lowering our cost of debt and reducing leverage,” president and chief executive officer Richard A. Smith said in a press release.

“After redeeming our 10% notes, our weighted average cost of borrowing will be below 6%, and our next significant debt maturity, other than the line of credit, occurs in 2019.

“Furthermore, we remain on track to achieve our target leverage in 2015.”

The Irving, Texas-based real estate investment trust owns a portfolio of primarily upper-upscale and luxury hotels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.