FelCor increases credit facility by $150 million, extends maturity

By Wendy Van Sickle

Columbus, Ohio, June 9 – FelCor Lodging Trust Inc. has increased its secured credit facility to $400 million from $250 million and extended the maturity date, according to a company press release.

The amended five-year facility matures in June 2020. FelCor has the option to extend the loan by one year subject to certain conditions. The facility was previously set to mature in July 2017.

Borrowings will bear interest at Libor plus 225 to 275 basis points, depending on the company’s leverage ratio, according to a form 8-K filed with the U.S. Securities and Exchange Commission. The rate was reduced from Libor plus 337.5 bps.

FelCor will pay a quarterly fee, which ranges depending on leverage from 30 to 35 bps, a reduction from 40 bps.

J.P. Morgan Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are the joint lead arrangers and joint bookrunners. JPMorgan Chase Bank NA will continue to be administrative agent. Bank of America NA is syndication agent.

FelCor said the facility is secured by mortgages on seven hotels and permits partial release and substitution of properties, subject to certain conditions. The company said that at closing it repaid a $140 million secured term loan that was due in 2017. As a result, FelCor now owns 19 unencumbered properties, an increase of 11 since the end of the first quarter 2015, according to the release.

FelCor is an Irving, Texas, real estate investment trust that owns a portfolio of primarily upper-upscale and luxury hotels in major and resort markets in the United States.

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