Mortgages

Return to Article

FelCor Lodging Trust Subsidiaries Close On Loan

The Associated Press

IRVING, Texas (AP) — Hotel real-estate investment trust FelCor Lodging Trust Inc. said Monday that its subsidiaries have closed on a $200 million secured term loan.

FelCor said proceeds from the loan, which is secured by nine hotels, will be used for general corporate purposes, including repayment of $128 million under FelCor's line of credit, which was terminated by the company.

FelCor owns 87 hotels and resorts in 23 states and Canada. Most of the hotels are managed by other companies, like Hilton Hotels Corp., Marriott International Inc., Starwood Hotels & Resorts Worldwide Inc. and InterContinental Hotels Group.

JPMorgan Securities Inc. served as lead arranger, and administrative agent JPMorgan Chase Bank NA provided a portion of the loan.

Felcor shares fell 16 cents, or 5.3 percent, to $2.86 in morning trading.