FelCor gets tenders for 91% of floating-rate, 7 5/8% notes

By Angela McDaniels

Seattle, Nov. 15 - FelCor Lodging Trust Inc. and its subsidiary, FelCor Lodging LP said they received tenders for $262.5 million of the company's $290 million floating-rate senior notes due 2011 and $114.3 million of its $125 million 7 5/8% senior notes due 2007 during a tender offer that ended Monday.

The remaining floating-rate notes, which bear interest at Libor plus 425 basis points, will be redeemed on Dec. 1 for $1,020 per $1,000 principal amount of notes plus accrued interest through Nov. 30.

FelCor paid $1,022.73 for each $1,000 principal amount of floating-rate notes tendered and $1,017.62 for each $1,000 principal amount of 7 5/8% notes tendered. The tender consideration includes a $20.00 per $1,000 principal amount consent payment for notes tendered before Oct. 30, the consent payment deadline.

The company received the necessary consents to amend the notes to eliminate some covenants and events of default.

In a previous news release, FelCor said it planned to fund the floating-rate tender offer with proceeds from a new private placement of senior debt, cash on hand and borrowings under an existing line of credit and the 7 5/8% tender offer with proceeds from a potential senior secured debt financing.

Merrill Lynch & Co. (888 654-8637 or 212 449-4914) was the dealer manager and solicitation agent for the offer, which began on Oct. 17.

Irving, Texas-based FelCor is a real estate investment trust focused on hotels.

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