WASHINGTON--(BUSINESS WIRE)--Feb. 7, 2002--MeriStar Hospitality Corporation (NYSE:MHX), the nation's third largest hotel real estate investment trust (REIT), today announced that it had completed the sale of $200 million senior, unsecured notes.
The 9.125 percent senior notes are an add-on to the company's existing $200 million in senior notes due in January 2011.
The proceeds of the sale will be used to pay down our revolving credit facility, said John Emery, president and chief operating officer. The sale of the notes continues our effort to replace bank debt that matures in 2003 with longer term, less restrictive debt. We now have an average maturity of 7.3 years, with less than $250 million of maturities through 2006.
Lehman Brothers Inc. was the sole book/lead manager for the sale, and Deutsche Banc Alex. Brown, Salomon Smith Barney, and S.G. Cowen were joint-lead managers.
Washington, D.C.-based MeriStar Hospitality Corporation owns 112 principally upscale, full-service hotels in major markets and resort locations with 28,597 rooms in 27 states, the District of Columbia and Canada. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Westin, Radisson and Doubletree. For more information about MeriStar Hospitality Corporation, visit the company's Web site: www.meristar.com.
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