IRVING, TX? FelCor Lodging Trust recently announced three financing transactions: a five-year, $375-million senior term loan; a 10-year, $100-million first mortgage term loan; and a 10-year, $75-million first mortgage term loan. The proceeds from the first loan were used to immediately pay off FelCor?s $250-million unsecured term loan, which was to mature on Dec. 31, 1999 and the balance will be used to reduce outstanding borrowings by approximately $300 million under its existing $850 million line of credit. ?We have spent the last few months working to pay off short term debt and increase availability under our line of credit,? said FelCor President/ CEO Tom Corcoran. He added that, with the financing transactions completed, the company has accomplished its debt financing goals. The first of the three transactions closed last month and was arranged by Chase Securities as book manager and Chase Manhattan Bank as administrative agent. The senior term loan, which was upsized from $300 million to $375 million due to strong investor demand, is secured by stock and partnership interests in certain FelCor subsidiaries and bears interest at 250 basis points over LIBOR. The financial covenants in the senior term loan are consistent with those in FelCor?s line of credit. In connection with this transaction, FelCor?s $850 million line of credit and existing seven and 10-year publicly-traded term notes were equally and ratably secured by the same collateral securing the senior term loan. Upon FelCor achieving investment grade credit ratings from the applicable rating agencies, the stock and partnership interests collateral will be released. FelCor closed the 10-year, $100 million first mortgage term loan from Prudential Mortgage Capital Company last month. The non-recourse loan, secured by seven Embassy Suites hotels, carries a fixed rate coupon of 7.54%, matures in April 2009 and amortizes over 25 years. The firm also closed a 10-year, $75 million mortgage term loan with Massachusetts Mutual Life Insurance Company that was secured by six Embassy Suites hotels.
