La Quinta Amends Credit Facility

DALLAS— La Quinta Corp. has amended certain terms of its $375 million credit facility. The amendment provides for the relaxation of the maximum total leverage ratio and the minimum fixed charge coverage ratio through March 31, 2003 and a reduction in the minimum lodging EBITDA covenant. Also included in the amendment are some modifications to certain definitions and other items. Pricing remained unchanged. Additional information will be provided when the Companys first quarter Form 10-Q is filed. “We are pleased with the amendment to our credit facility…[it]is consistent with our previously announced expectation of a difficult first half in 2002 followed by a stronger second half,” said David Rea, evp/CFO. At December 31, 2001, the company had $145 million of bank notes outstanding under its term loan and no borrowings under its $225 million revolving line of credit. Total indebtedness at December 31, 2001 was $1 billion of which $35 million matures in 2002. The Company had $138 million of cash at December 31, 2001.