FelCor to retire 9½% notes with convertible proceeds, excess cash

Pittsburgh, Aug. 18 - FelCor Lodging Trust will use excess cash and proceeds from its offering of about 2 million additional shares of its $1.95 series A cumulative convertible preferred stock to retire at least $50 million of its 9½% senior notes due 2008, according to a company news release.

Net proceeds of the convertible offering are estimated to be about $46 million before any exercise of the 300,000 share over-allotment option, the release said.

FelCor's senior notes currently bear interest at 10%.

FelCor is a lodging real estate investment trust and owner of full service, all-suite hotels.

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