GERMANTOWN, TN— Equity Inns has closed on a $110-million senior secured revolving credit facility provided by a group of six banks— Bank One NA, Credit Lyonnais (New York Branch), Fleet National Bank, National Bank of Commerce, AmSouth Bank, and Union Planters National Bank – National Association. The credit facility is non-amortizing and is secured by 26 operating hotels. The facility has a three-year term with a one-year option, and bears interest at a variable rate of LIBOR plus 2.25% – 3.0%, as determined by the companys percentage of total debt to earnings before interest, taxes, depreciation and amortization (EBITDA). As of this past Mar. 31, 2003, the interest rate on the line of credit was LIBOR plus 2.75%. This new credit facility replaces the company’s previous $125-million senior secured revolving line of credit. Upon the closing of this facility, the company will have no debt maturities until 2007.
