FelCor Provides Portfolio and Balance Sheet Update
02 Junho 2011 - 5:03PM
Business Wire
FelCor Lodging Trust Incorporated (NYSE: FCH) today announced
significant progress on several balance sheet and portfolio
initiatives, including:
- Completed the sale of $525 million of
6.75% senior notes and acquired Royalton and Morgans hotels in New
York for $140 million;
- Called $144 million of 10% senior notes
due 2014 for redemption (total consideration: $158.4 million),
which will be completed on June 16, 2011;
- Repaid the remaining $46 million of 9%
senior notes that matured on June 1, 2011;
- Excess proceeds from the 6.75% senior
notes offering, together with the undrawn $225 million line of
credit, created in excess of $400 million of liquidity that is
available for permanent debt reduction or future acquisitions;
and
- Sold three non-strategic hotels in May,
with seven hotels under contract or under negotiation.
These measures are part of FelCor’s long-term strategic plan to
improve the overall portfolio quality, increase future growth
rates, lower its debt balance and average cost of debt, and stagger
and extend debt maturities.
Recent Corporate Financings:
FelCor raised $671 million in net proceeds, after fees and
expenses, from the sale of $525 million of 6.75% senior notes due
2019 and the recent equity offering. FelCor intends to use the
remaining net proceeds (approximately $180 million after accounting
for the transactions described above and repayment of borrowings
under its line of credit) to repay high-cost debt or fund future
acquisitions. FelCor has lowered its average cost of debt by more
than 50 basis points during the second quarter.
Disposition Program Update:
FelCor’s previously announced disposition program is proceeding
better than expected. Since November 2010, FelCor has sold four
non-strategic hotels. In addition, it has entered into definitive
agreements to sell five non-strategic hotels, and is negotiating to
sell an additional two non-strategic hotels. The company expects to
generate aggregate gross proceeds of $272 million from the sale of
these 11 hotels, which equates to an average of 12.5 times 2011
Hotel EBITDA of $21.8 million and approximately 6% NOI
capitalization rate. In connection with the sale of these hotels,
FelCor will repay $135 million of secured debt. The five hotels
under contract are expected to be sold by the end of July.
During May, as noted above, FelCor sold three non-strategic
hotels (in Tempe, AZ, Lexington, KY and Rosemont, IL) for aggregate
gross proceeds of $54 million. Revenue per Available Room
(“RevPAR”) for these hotels was $74.77 for 2010, 24% less than
FelCor’s core portfolio ($98.35).
With the exception of historical information, the matters
discussed in this news release include “forward-looking statements”
within the meaning of the federal securities laws. Forward-looking
statements are not guarantees of future performance. Numerous risks
and uncertainties, and the occurrence of future events, may cause
actual results to differ materially from those currently
anticipated. Certain of these risks and uncertainties are described
in greater detail in our filings with the Securities and Exchange
Commission. Although we believe our current expectations to be
based upon reasonable assumptions, we can give no assurance that
our expectations will be attained or that actual results will not
differ materially. We undertake no obligation to update any
forward-looking statement to conform the statement to actual
results or changes in our expectations.
FelCor, a real estate investment trust, is the nation's largest
owner of upper-upscale, all-suite hotels. FelCor owns interests in
81 properties located in major markets throughout 22 states.
FelCor's diversified portfolio of hotels and resorts are flagged
under global brands such as - Doubletree®, Embassy Suites Hotels®,
Hilton®, Fairmont®, Marriott®, Renaissance®, Sheraton®, Westin® and
Holiday Inn®. Additional information can be found on the Company's
Web site at www.felcor.com.
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