ATLANTA Hotel operator Lodgian reported that talks aimed at selling the company to Edgecliff Holdings LLC for $133 million were terminated. The company has been on the block for some time and has been working with Edgecliff on the transaction for the last several months.
It was reported that Edgecliff was unable to obtain refinancing of Lodgians outstanding high-yield bonds on acceptable terms from their holders, and therefore, would not proceed with the acquisition.
Edgecliff, which is Lodgians largest shareholder, recently announced a buyout offer valuing Atlanta-based Lodgian at $4.75 a share. When talks of a buyout originated, Edgecliff had offered $5.00 a share for Lodgian but the bid was revised after the company conducted due diligence. Lodgian has 112 hotels in its portfolio in 32 U.S. states and Canada. (2/28/01)