FelCor Closes Senior Note Offering
17 Dezembro 2012 - 7:08PM
Business Wire
FelCor Lodging Trust Incorporated (NYSE: FCH) today announced
the closing of the offer and sale of $525 million aggregate
principal amount of 5.625% senior secured notes due 2023. This
financing enables FelCor to benefit from historically low interest
rates, mitigate future market risk, create a long-term and
staggered maturity profile, and significantly reduce its cost of
borrowing.
After giving effect to the offering and associated debt
repayment, annual interest expense will decline approximately $20
million, which equates to $0.16 of additional funds from operations
(“FFO”) per share.
FelCor will use the proceeds from the offering to:
- Redeem $258 million in aggregate face
amount of 10% senior notes due 2014;
- Repay a $187 million mortgage loan that
bears interest at 8.1%;
- Pay $55 million of prepayment costs,
underwriting fees and other expenses; and
- Repay $25 million of the outstanding
amount on its line of credit.
With this offering, FelCor has effectively completed the capital
markets portion of restructuring its balance sheet. The Company
expects to repay the remaining $234 million of 10% notes, and other
mortgage debt, using proceeds from future asset sales.
Thereafter, FelCor will have a strong and flexible balance sheet
and a favorable cost of debt highlighted by:
- Average debt maturity extended to
2021;
- Weighted average cost of borrowing
reduced to below 6%, significantly lower than FelCor’s historical
levels; and
- Run-rate consolidated interest expense
reduced to approximately $75-$80 million, or more than $50 million
below 2011.
FelCor continues to execute its value creation strategy by
selling non-core assets, driving operational improvement,
strengthening its balance sheet and repositioning its portfolio to
improve its return on invested capital. The Company’s asset
sales/portfolio repositioning program is progressing, with core
portfolio ADR, RevPAR and FFO all showing marked improvement.
About FelCor:
FelCor, a real estate investment trust, owns 67 primarily
upper-upscale, full-service hotels that are located in major and
resort markets throughout 22 states. FelCor partners with leading
hotel companies to operate its diversified portfolio of hotels,
which are flagged under globally recognized names such as,
Doubletree®, Embassy Suites®, Fairmont®, Hilton®, Marriott®,
Renaissance®, Sheraton®, Westin® and Holiday Inn®, and premier
independent hotels in New York. Additional information can be found
on the Company's Web site at www.felcor.com.
Felcor Lodging (NYSE:FCH)
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