FelCor Lodging Amends Notes For Debt Flexibility

IRVING, Texas (AP) — FelCor Lodging Trust Inc. said Monday it is amending a series of corporate notes to provide a subsidiary more flexibility to incur debt.

The real estate investment trust has received approval from note holders to amend the 10 percent senior secured notes due 2014, enabling FelCor Lodging LP debt flexibility.

The amendment was expected to become effective Monday.

Last month, the company said it planned to raise $530 million in new debt using proceed to pay obligations coming due in 2011.

The FelCor Lodging LP was to offer senior secured notes to qualified institutional buyers.

Analysts at Moody's Investors Services assigned a B2 non-investment grade rating to new senior notes issued by the company and downgraded other ratings on Sept. 17.

The corporate family rating was lowered to B3 from B2. The analysts also downgraded the ratings of FelCor's outstanding senior unsecured notes to B3 from B2, as well as the ratings of its preferred stock to Caa3 from Caa2. The rating outlook remained negative.