FelCor starts tender for 9½% notes, calls 7 3/8% notes

New York, May 11 - FelCor Lodging Trust Inc. and subsidiary FelCor Lodging Trust LP said FelCor LP has started a tender offer for up to $475 million principal amount of its 9½% senior notes due 2008 and will redeem its 7 3/8% senior notes due 2004.

The 9½% notes are currently paying interest at 10%.

Holders who tender the 9½% notes by the early tender date of 5 p.m. ET on May 24 will receive $1,072.05 per $1,000 principal amount. The total includes an early tender premium of $20.00 per $1,000.

Holders who tender after the early tender date but before the expiration date of midnight ET on June 8 will receive $1,052.05 per $1,000 principal amount.

The offer is conditional on at least $350 million principal amount of the notes being tendered by the early tender date.

Funding will come from a planned offering of $350 million senior floating-rate notes due 2011 and excess cash.

MacKenzie Partners Inc. is the information agent (call collect 212 929-5500 or 800 322-2885). Deutsche Bank Securities Inc. is dealer manager (212 250-4270).

The Irving, Texas, lodging REIT will redeem the $175 million 7 3/8% notes on June 9.

FelCor will pay the redemption price in the indenture plus accrued interest.

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