MeriStar buys back $39 million more notes, exchanges $25 million

New York, April 12 - MeriStar Hospitality Corp. said it bought back a further $39 million of its senior notes and exchanged an additional $25 million of its 8¾% senior subordinated notes due 2007 for stock.

Exchanges for a further $11 million of the 8¾% notes are pending.

And the Arlington, Va., lodging company said it plans to call the remaining $34 million of the 8¾% notes by the end of the third quarter.

With the latest buybacks, MeriStar has repurchased $74 million of its senior notes so far this year. It now has $876 million of the securities outstanding.

The $25 million of 8¾% notes retired brings the year-to-date total to $38 million plus $0.8 million of accrued interest, for which MeriStar issued 6.3 million shares of common stock.

MeriStar said it is waiting for New York Stock Exchange approval for two further exchanges covering a total of $11 million more of the notes plus $0.2 million of accrued interest for 1.8 million shares of common stock.

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