Starwood Hotels closes $1.3 billion credit facility

By Sara Rosenberg

New York, Oct. 10 - Starwood Hotels & Resorts Worldwide Inc. closed on a new $1.3 billion senior credit facility. Deutsche Bank and JPMorgan Chase are co-lead managers for the loan and Bank of America, Fleet National Bank and Societe Generale are co-documentation agents.

The facility consists of a $1 billion revolver and a $300 million term loan, each maturing in 2006 with a one-year extension option. The initial interest rate on both tranches is Libor plus 162.5 basis points, according to a news release.

Proceeds were used to repay all outstanding debt under the company's existing senior credit facility, which was scheduled to mature on Feb. 23, 2003.

Including the completion of the new bank loan, the White Plains, N.Y. hotel and leisure company has refinanced $2.8 billion of debt in 2002 and has approximately $600 million available under its domestic and international revolvers.

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