Red Lion Hotels repays outstanding term loans via hotel sale proceeds

By Sarah Lizee

Olympia, Wash., July 20 – Red Lion Hotels Corp. used proceeds from RL Spokane, LLC’s sale of Hotel RL Spokane to Centennial LLC to prepay the $8,938,000 of outstanding term loans under its credit agreement dated May 14 with Deutsche Bank AG New York Branch as administrative agent.

RL Spokane completed the sale on July 16 for a purchase price of $35 million, which was paid in cash at closing, according to an 8-K filing with the Securities and Exchange Commission.

Under the terms of the credit agreement, all net proceeds from the sale of the hotel that were distributed by RL Venture, LLC were required to be maintained by Red Lion Hotels in a cash collateral account controlled by Deutsche Bank and could be used by Red Lion to prepay any outstanding term loans under the credit agreement.

Red Lion is a hospitality company based in Spokane, Wash.

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