SILVER SPRING, Md., Jan. 5 /PRNewswire/ -- Choice Hotels International,
Inc. (NYSE: CHH), the world's second largest hotel franchiser, announced today
that it had received from Sunburst Hospitality Corporation approximately $102
million in cash and an 11-3/8% seven-year senior subordinated note in the
amount of $35 million, which contains standard and customary high-yield loan
terms and conditions. The note contains, among other things, a cash pay
interest feature that begins 18 months from issuance. The Company had
previously announced on December 21, 2000, that it intended to receive such
amounts upon the closing of Sunburst's recapitalization, which occurred
yesterday.
The Company intends to use the cash proceeds to pay down debt, invest in
strategic initiatives and repurchase shares.
About Choice Hotels
Choice Hotels International is the second largest hotel franchiser in the
world with 4,371 hotels open, representing 349,392 rooms, and another 694
hotels under development, representing 61,244 rooms, in 41 countries as of
September 30, 2000. Its Comfort, Quality, Clarion, Sleep Inn, Econo Lodge,
Rodeway Inn and MainStay Suites brands serve guests worldwide. Additional
corporate information may be found on the Choice Hotels' Internet site, which
may be accessed at www.choicehotels.com.
Comfort, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay
Suites and ChoiceBuys.com are registered trademarks and service marks of
Choice Hotels International, Inc.
Certain matters discussed in this press release may constitute forward-
looking statements within the meaning of the federal securities law. Such
statements are based on management's beliefs, assumptions and expectations,
which in turn are based on information currently available to management.
Actual performance and results could differ from those expressed or
contemplated by the forward-looking statements due to a number of risks,
uncertainties and other factors, many of which are beyond Choice's ability to
predict or control. For further information on factors that could impact
Choice and the statements contained therein, we refer you to the filings made
by Choice with the Securities and Exchange Commission, including its
registration statement on Form S-4 and report on Form 10-Q for the period
ended June 30, 1999.
SOURCE Choice Hotels International, Inc.
|
Post Release
Get Content
Email News Brief
Saved Articles
Advertising
Handheld
XML/RSS
Post News