FelCor amends credit facility, reducing size, easing covenants

New York, Dec. 20 - FelCor Lodging Trust Inc. said it amended its credit facility, reducing the size to $300 million from $615 million and easing covenants.

The Irving, Texas lodging REIT said the changes to the covenants allow it to "maintain its financing flexibility."

"FelCor chose to reduce the commitments to $300 million since we have no current need for such capacity. The amended line, our cash position, and other balance sheet capacity allow FelCor to maintain its financial flexibility," said Richard J. O'Brien, FelCor's executive vice president and chief financial officer, in a news release.

FelCor said it currently has no borrowings on the facility.

Lead banks on the facility are JPMorgan Chase Bank and Deutsche Bank Trust Co. Americas.

The maturity remains November 2004 with the option to extend for up to two additional one-year terms.

Pricing of the amended facility is the same and continues to be based on FelCor's leverage ratio. At its current leverage, the cost of borrowing is approximately 5%, FelCor said.

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