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FelCor to redeem any floating-rate notes outstanding after tender offer
By Laura Lutz
Des Moines, Oct. 31 - FelCor Lodging Trust Inc. announced that its subsidiary, FelCor Lodging LP, called for redemption all of its senior floating rate notes due 2011 following expiration of its tender offer for the notes.
The notes will be redeemed on Dec. 1 for $1,020 per $1,000 principal amount of the notes, plus accrued interest through Nov. 30.
The company's tender offer for the notes expires on Nov. 14.
The consent deadline in the offer was Oct. 30, and the company announced that it had received tenders and consents for $262.5 million, or 91%, of the outstanding notes.
FelCor will pay $1,022.73 for each $1,000 principal amount of floating-rate notes tendered in the offer.
That amount includes a $20 per $1,000 principal amount consent payment for notes tendered before the consent payment deadline. Floating-rate notes tendered after the consent deadline will receive $1,002.73.
Along with the tender offer, the company is soliciting consents to amend the notes to eliminate some covenants and events of default.
Tenders submitted before the consent deadline may not now be withdrawn.
FelCor plans to fund the offer from a new private placement of senior debt, cash on hand and borrowings under an existing line of credit.
The tender offer is conditioned upon the receipt of tenders for at least a majority of the notes by the consent deadline and completion of the planned financings.
Merrill Lynch & Co. (888 654-8637 or collect 212 449-4914) is the dealer manager and solicitation agent.
Based in Irving, Texas, FelCor is a real estate investment trust focused on hotels.
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