IRVING, TX — FelCor Lodging Trust Inc. is commencing an offering of approximately 2 million additional shares of its $1.95 Series A Cumulative Convertible Preferred Stock (NYSE: FCHPRA), subject to market and other conditions. The offering is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. With the offering, FelCor will grant the underwriters an over-allotment option to purchase up to an additional 300,000 shares of Series A preferred stock. The offering’s net proceeds are estimated at about $46 million before any exercise of the underwriters’ over-allotment option and will be used along with excess cash to retire at least $50 million of FelCor’s 9.5% Senior Notes due in 2008 that currently bear interest at 10%. Citigroup and Bear, Stearns & Co. Inc. will be joint lead managers and joint bookrunners for the offering.
