Winston Hotels gets $155 million revolver

By Sara Rosenberg

New York, March 17 - Winston Hotels Inc. closed on a new $155 million five-year revolving credit facility, according to a company news release. General Electric Capital Corp. was the lead bank on the deal.

The revolver carries an interest rate of Libor plus 175 to 250 basis points based on the ratio of the underwritten net operating income of the hotels that collateralize the facility to the outstanding principal balance of the line.

The initial interest rate is Libor plus 200 basis points.

Security is 23 hotel properties owned by one of the company's wholly owned subsidiaries.

At closing, the company borrowed $77.5 million under the new revolver to repay all outstanding debt under its previous $125 million credit facility.

"Through this credit facility and our Marathon Funding $50 million credit facility, we now have approximately $127 million available to finance our external growth strategies of 1) acquiring both profitable and deep turn-around hotels that require repositioning, 2) our debt investment financing program, and 3) hotel development," said Joe Green, president and chief financial officer, in the release.

Winston Hotels is a Raleigh, N.C.-based real estate investment trust specializing in upscale extended-stay and full-service hotels.

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