FelCor Lodging subsidiary gets consents for 8½% notes, floaters

By Jennifer Chiou

New York, Sept. 30 - FelCor Lodging Trust Inc. said its subsidiary, FelCor Lodging LP, has obtained the needed consents for its $215 million of floating-rate senior secured notes due 2011 and $300 million of 8½% senior notes due 2011.

As a result, the company has executed supplemental indentures for the notes.

The subsidiary is soliciting consents to proposed amendments to the indentures governing the notes that would eliminate substantially all of the restrictive covenants and some event-of-default provisions.

As of the consent deadline at 5 p.m. ET on Sept. 30, holders of a majority of each series of notes had delivered consents.

As already reported, holders who tender their notes are required to consent to all of the proposed amendments.

Additionally, if holders of at least two-thirds of floating-rate notes consent, the collateral securing those notes will be released.

The tender offers and consent solicitations will expire at 11:59 p.m. ET on Oct. 15. They began on Sept. 17.

The company is offering par for notes, which includes a consent payment of $20.00 for each $1,000 principal amount of notes tendered by the consent date.

The tender offer for the 8½% notes is conditioned on the tender of at least a majority of the outstanding notes by the consent date, the tender of at least 90% of the notes by the expiration date and the consummation of the tender offer for the floating-rate notes.

The tender offer for the floating-rate notes is conditioned on the tender of at least a majority of the outstanding notes by the consent date and the consummation of the tender offer for the 8½% notes.

Both offers are also conditioned on the consummation of a refinancing transaction that, in addition to cash on hand, produces enough proceeds to purchase the tendered notes.

The dealer manager and solicitation agent is J.P. Morgan Securities Inc. (212 270-3994 or 800 245-8812), and the information agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 470-4300).

FelCor is an Irving, Texas-based real estate investment trust that owns upscale, all-suite hotels.

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