MEMPHIS, TN RFS Hotel Investors has entered into an interest rate swap agreement with PNC Bank, N.A., which effectively fixes the interest rate on $30 million of the company s floating rate debt at 6.775% through July 30, 2003. The 6.775% interest rate consists of a fixed rate of 4.775%, plus the credit spread in effect on the company s line of credit (currently 200 basis points). The credit spread can vary from 150 basis points to 225 basis points, depending on the company s leverage ratios.
According to Kevin Luebbers, the company s evp/CFO, approximately 92% of RFS debt is now fixed at an average interest rate of 7.7%. (3/27/02)