MEMPHIS, TN— RFS Hotel Investors, Inc. has concluded an amendment of its $140 million line of credit, relaxing certain financial covenants, including the interest coverage, fixed charge coverage, and total leverage tests and extending the facility from July 30, 2004 to July 30, 2005. The interest rate will continue to range from 150 to 250 basis points above LIBOR, depending on the companys leverage. Banc of America Securities LLC acted as the sole lead arranger, with Bank of America, N.A. as agent and lender. The other lenders included Credit Suisse First Boston, AmSouth, First Tennessee, PNC, Wells Fargo and Union Planters. Kevin Luebbers, evp/CFO of RFS, added, “We appreciate this expression of confidence from our lenders. The companys debt profile continues to compare favorably to other lodging companies, with no significant debt maturities prior to 2008 and only $9.25 million outstanding under the $140 million line of credit. Our credit statistics are strong and we are well positioned to take advantage of investment opportunities should they become available. Our focus continues to be on maximizing the cash returns on our investments and maintaining a strong balance sheet.” Currently, RFS Hotel Investors, Inc. owns 58 hotels reperesenting 8,400 rooms in 24 states.
Previous ArticleESA Amends Credit Facility To Push Development
Next Article Wyndham Sells Georgia Hotel For $11 Million