MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 31, 2002--RFS Hotel Investors, Inc. (NYSE:RFS) today announced that it has concluded an amendment and extension of its $140 million line of credit.
The amendment extends the maturity of the facility from July 30, 2004 to July 30, 2005, and relaxes certain financial covenants, including the interest coverage, fixed charge coverage, and total leverage tests. The interest rate will continue to range from 150 basis points to 250 basis points above LIBOR, depending on the Company's leverage.
Kevin Luebbers, executive vice president and chief financial officer of RFS, added, We appreciate this expression of confidence from our lenders. The Company's debt profile continues to compare favorably to other lodging companies, with no significant debt maturities prior to 2008 and only $9.25 million outstanding under the $140 million line of credit. Our credit statistics are strong and we are well positioned to take advantage of investment opportunities should they become available. Our focus continues to be on maximizing the cash returns on our investments and maintaining a strong balance sheet.
Banc of America Securities LLC acted as the sole lead arranger, with Bank of America, N.A. as agent and lender. The other lenders included Credit Suisse First Boston, AmSouth, First Tennessee, PNC, Wells Fargo and Union Planters.
RFS Hotel Investors, Inc. (RFS) is a real estate investment trust (REIT) that owns 58 hotels with approximately 8,400 rooms located in 24 states. RFS's hotel portfolio is diversified by geography, brand and segment. Leading brands under which RFS hotels are operated include Sheraton(R), Residence Inn by Marriott(R), Hilton(R), Doubletree(R), Holiday Inn(R), Hampton Inn(R), and Homewood Suites by Hilton(R). By segment, RFS receives approximately 37% of its EBITDA from full service hotels, 36% from extended stay hotels and 27% from limited service hotels.
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