IRVING, TX—FelCor Lodging Trust Incorporated has closed a $140 million term loan, secured by three unspecified properties, as part of its plan to restructure its balance sheet.
FelCor expects to use proceeds from the term loan, cash on hand and its line of credit to redeem its remaining $234 million of 10% senior secured notes in August. FelCor will thereafter use proceeds from pending and future asset sales to repay debt and complete its balance sheet restructuring.
"We continue to improve our balance sheet significantly by enhancing our maturity profile, lowering our cost of debt and reducing leverage,” said Richard Smith, president and chief executive officer. “After redeeming our 10% notes, our weighted average cost of borrowing will be below 6%, and our next significant debt maturity, other than the line of credit, occurs in 2019. Furthermore, we remain on track to achieve our target leverage in 2015."
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
