MeriStar exchanges $13.5 million notes for stock, buys back $61.5 million

New York, March 15 - MeriStar Hospitality Corp. said that it has continued to exchange its 8¾% senior subordinated notes due 2007 for stock and buy senior notes for cash.

So far this year, the Arlington, Va., lodging company has issued 2.291 million shares of common stock in exchange for $13.5 million of the senior subordinated notes, according to a 10-K filing with the Securities and Exchange Commission.

MeriStar has also repurchased for cash $61.5 million of its senior unsecured notes, including $16.5 million of its 9% notes due 2008, $30.8 million of its 9 1/8% notes due 2011 and $14.2 million of its 10½% notes due 2009.

As of March 8, it had $69.3 million of the senior subordinated notes outstanding and $884.0 million of senior unsecured notes.

MeriStar added that it expects to retire the remaining senior subordinated notes this year.

The transactions are part of the company's efforts to reduce its leverage and extend its debt maturities.

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