JPMorgan Securities Arranges $200M Loan for FelCorp

IRVING, TX – In one of the largest deals of its kind this year, JPMorgan Chase Securities Inc. arranged a $200 million loan today for Irving, TX-based FelCor Lodging Trust.

The loan gives FelCor breathing room from the new debt until 2013.

The loan is non-recourse, meaning FelCor officials personally cannot be sued if the loan defaults. The lender or lenders can only take back the properties.

For collateral, FelCor put up nine hotels, representing 2,331 guest rooms. The loan bears interest at LIBOR plus 350 basis points; has a 65 percent LTV ratio and, including both extension options, matures in 2013.

JPMorgan Chase Bank, N.A., is the administrative agent and provided a portion of the loan.

Proceeds of the new loan will be used for general corporate purposes, including repayment of outstanding obligations totaling $128 million under FelCor’s line of credit, which was terminated by the Company.

“We are pleased to have closed this loan in a very challenging environment.,” says Andrew J. Welch, (top right photo) FelCor’s Executive Vice President and Chief Financial Officer.

“This transaction allows us to terminate our line of credit, thereby eliminating restrictive financial covenants and increasing our flexibility to encumber other hotels.

“Equally important, this new loan extends our maturity profile and provides additional liquidity in the form of cash on hand. We are now focused on refinancing debt maturing in 2010 and 2011,” said

FelCor, a real estate investment trust, is the nation’s largest owner of upper upscale, all-suite hotels. FelCor owns interests in 87 hotels and resorts, located in 23 states and Canada.

FelCor’s portfolio consists mostly of upper upscale hotels, which are flagged under global brands such as Embassy Suites Hotels®, Doubletree®, Hilton®, Marriott®, Renaissance®, Sheraton®, Westin® and Holiday Inn®.