Innkeepers USA Trust Amends Revolving Unsecured Line of Credit
27 September 2006 - 4:45AM
PR Newswire (US)
Also Completes $75 Million Financing with Merrill Lynch Mortgage
Lending, Inc. PALM BEACH, Fla., Sept. 26 /PRNewswire-FirstCall/ --
Innkeepers USA Trust (NYSE:KPA), a hotel real estate investment
trust (REIT) and a leading owner of upscale properties throughout
the United States, today announced that it successfully amended its
existing $135 million revolving unsecured line of credit. The
amended credit facility capacity has been increased to $205
million, and the maturity was extended from July 2007 to September
2008. In addition, the interest rate was reduced to a range of 115
to 175 basis points over LIBOR from 140 to 225 basis points, and,
subject to certain conditions, the company has the ability to
increase the facility to $275 million. Participating lenders for
the amended unsecured line of credit include Wells Fargo Bank,
National Association, as administrative agent and sole lead
arranger; Wachovia Bank, National Association, and Calyon New York
Branch, as co-syndication agents; and PNC Bank, National
Association, as documentation agent. "This amended and expanded
credit facility gives us significant flexibility and provides us
with sufficient capacity, and at a reduced cost, to execute our
strategic business plans, including the selective acquisition and
development of hotels," said Jeffrey H. Fisher, Innkeepers USA's
chief executive officer and president. Concurrently, the company
closed on a $75 million financing package involving three loans,
including a term loan at a 10-year fixed rate of 6.03 percent that
bears interest only for three years and thereafter will amortize
over a 30-year period. The net proceeds were used to pay down the
outstanding balance under the amended revolving line of credit.
Merrill Lynch Mortgage Lending, Inc. was the lead arranger for the
new facility. "This is our first financing with Merrill Lynch, and
we look forward to building on our relationship with this
significant source of capital," said Dennis Craven, Innkeepers
USA's chief financial officer. "The new term loan reduces the
average interest rate on our fixed-rate debt by 50 basis points to
7.3 percent and extends our weighted average maturity date to 5.4
years from 3.7 years." Innkeepers USA Trust owns 70 hotels with a
total of 8,818 suites or rooms in 20 states and Washington, D.C.,
and focuses on acquiring or developing premium-branded upscale
extended-stay and select-service hotels, the core of the company's
portfolio; selected full-service hotels; and turn-around
opportunities for hotels that operate under or can be converted to
the industry's leading brands. For more information about
Innkeepers USA Trust, visit the company's web site at
http://www.innkeepersusa.com/. Cautionary statements set forth in
reports filed by the company from time to time with the Securities
and Exchange Commission discuss important factors impacting, or
that could impact, the company and its results or forecasted
results. These factors include, without limitation, (i) risks that
war, terrorism or similar activities, widespread health alerts,
disruption in oil imports or higher oil prices or changes in
domestic or international political environments, have affected and
may continue to negatively affect the travel industry and the
company, and the negative effects of such events that may occur in
the future cannot be fully anticipated, (ii) the relative strength
and performance of businesses and industries that are important
demand generators in the company's key markets (e.g., technology,
automotive, aerospace), (iii) international, national, regional and
local economic conditions that will, among other things, affect
demand for the company's hotel rooms and the availability and terms
of financing, (iv) the company's ability to maintain its properties
in competitive condition, (v) the company's ability to acquire or
develop additional properties and risks that potential acquisitions
or developments may not perform in accordance with expectations,
(vi) changes in travel patterns or the prevailing means of commerce
(i.e., e- commerce), and (vii) the complex tax rules that the
company must satisfy to qualify as a REIT, and other governmental
regulation. Contact: Dennis Craven (Company) Jerry Daly or Carol
McCune Chief Financial Officer Daly Gray (Media) (561) 227-1302
(703) 435-6293 DATASOURCE: Innkeepers USA Trust CONTACT: Dennis
Craven, Chief Financial Officer of Innkeepers USA Trust,
+1-561-227-1302; or Jerry Daly or Carol McCune of Daly Gray,
+1-703-435-6293, for Innkeepers USA Trust Web site:
http://www.innkeepersusa.com/
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