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FelCor gets required consents for floating-rate and 7 5/8% notes
By Jennifer Chiou
New York, Oct. 31 - FelCor Lodging Trust Inc. announced that its subsidiary, FelCor Lodging LP, received the necessary consents in the tender offer for all of its $290 million of senior floating-rate notes due 2011, which bear interest at Libor plus 425 basis points, and all of its $125 million of 7 5/8% senior notes due 2007.
The company is soliciting consents to amend the notes to eliminate some covenants and events of default.
As of the consent deadline at 5 p.m. ET on Oct. 30, the company said it received tenders from holders of 91% of its floaters and 91% of its 7 5/8% notes.
FelCor will pay $1,022.73 for each $1,000 principal amount of floating-rate notes tendered.
That amount includes a $20.00 per $1,000 principal amount consent payment for notes tendered before the consent payment deadline. Floating-rate notes tendered after the consent deadline will receive $1,002.73.
For each $1,000 principal amount of 7 5/8% notes tendered before the consent deadline, the company will pay $1,017.62. Holders who submit 7 5/8% notes after the consent deadline will receive the same amount, less a consent payment of $20.00 per $1,000 principal amount.
The tenders expire at 5 p.m. ET on Nov. 14. The offers were announced on Oct. 17.
Tenders submitted before the consent deadline may not be withdrawn after the consent deadline.
FelCor plans to fund the floating-rate tender offer from a new private placement of senior debt, cash on hand and borrowings under an existing line of credit. The 7 5/8% tender offer will be funded with proceeds from a potential senior secured debt financing.
The tender offers are conditioned upon the receipt of tenders for at least a majority of the notes by the consent deadline and completion of the planned financings.
Merrill Lynch & Co. (888 654-8637 or collect 212 449-4914) is the dealer manager and solicitation agent.
Based in Irving, Texas, FelCor is a real estate investment trust focused on hotels.
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