News Column

FelCor Closes $140 Million Term Loan

July 24, 2014

Proceeds Will Be Used to Redeem Its 10% Senior Secured Notes

IRVING, Texas--(BUSINESS WIRE)-- FelCor Lodging Trust Incorporated (NYSE: FCH) today announced that it closed a $140 million term loan. Borrowings under the facility bear interest at LIBOR (no floor) plus 2.5%. The loan matures in 2017 (may be extended for up to two years, based on satisfaction of certain conditions) and is freely pre-payable. The loan is secured by three properties.

FelCor expects to use proceeds from the term loan, cash on hand and its line of credit to redeem its remaining $234 million of 10% senior secured notes in August 2014. FelCor will thereafter use proceeds from pending and future asset sales to repay debt and complete its balance sheet restructuring.

"We continue to improve our balance sheet significantly by enhancing our maturity profile, lowering our cost of debt and reducing leverage. After redeeming our 10% notes, our weighted average cost of borrowing will be below 6%, and our next significant debt maturity, other than the line of credit, occurs in 2019. Furthermore, we remain on track to achieve our target leverage in 2015," said Richard A. Smith, President and Chief Executive Officer.

About FelCor

FelCor, a real estate investment trust, owns a diversified portfolio of primarily upper-upscale and luxury hotels that are located in major and resort markets throughout the U.S. FelCor partners with leading hotel companies to operate its hotels, which are flagged under globally renowned names and premier independent hotels. Additional information can be found on the Company's website at www.felcor.com.

With the exception of historical information, the matters discussed in this news release include “forward-looking statements” within the meaning of the federal securities laws that are qualified by cautionary statements herein and in FelCor’s filings with the Securities and Exchange Commission. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.





FelCor Lodging Trust Incorporated

Stephen A. Schafer, 972-444-4912

Vice President Strategic Planning & Investor Relations

sschafer@felcor.com


Source: FelCor Lodging Trust Incorporated


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