CNL Hotels & Resorts gets $400 million term loan

By Sara Rosenberg

New York, Feb. 15 - CNL Hotels & Resorts Inc. closed on a new $400 million term loan due Feb. 9, 2008, according to an 8-K filed with the Securities and Exchange Commission.

Deutsche Bank was the lead bank on the deal.

At closing on Feb. 9, the company drew down $340 million of the loan with this portion carrying an interest rate of Libor plus 140 basis points. The remaining $60 million must be drawn on or before April 15 and will carry an interest rate of Libor plus 606.7 basis points.

Of the $340 million that was drawn, $290 million was used to refinance existing outstanding debt and the remainder will be used to make a distribution and fund improvements to the Hotel Del Coronado property.

The term loan's maturity date can be extended by one year twice, subject to certain conditions.

CNL is an Orlando, Fla.-based owner of distinctive business and leisure properties.

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