WASHINGTON–(BUSINESS WIRE)–Dec. 19, 2001–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 $250 million senior, unsecured notes.
Proceeds of the sale will be used to pay off Term Loans A and B, with the balance to be used to reduce the amount outstanding under the revolver to approximately $228 million. The notes, which have a coupon rate of 10.5 percent, mature in June 2009.
Lehman Brothers Inc., Deutsche Banc Alex. Brown and S.G. Cowen were the joint lead managers for the sale.
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.