X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-Merrill Lynch Mortgage Lending Inc. is providing a two-loan, refinancing package to Lodgian Inc. that will reduce its long-term mortgage debt to $425 million.

The locally based manager of 88 hotels housing 16,627 rooms is getting a $110-million floating rate facility secured by 29 hotels with interest priced at Libor plus 340 basis points. The two-year loan has an option for three one-year extensions.

The second loan, a fixed-rate $260-million facility, is secured by 35 hotels and carries an interest rate of 6.58%. Lodgian’s long-term debt of $425 million has a weighted average interest rate of about 6.7%.

“We have now restructured our balance sheet and attained a debt-to-total capital ratio more in line with our peer hotel companies,” Lodgian president and CEO W. Thomas Parrington says in a prepared statement. “The redemption of our preferred stock, which carries an annual coupon of 12.25%, substantially reduces our fixed charges.” Parrington adds, “We believe we now have a much stronger balance sheet and are well-positioned to respond to the opportunities ahead of us as the hotel industry recovers from a three-year downturn.”

In a related action, Lodgian has completed a public offering of $18.28 million shares of its common stock at $10.50 per share. The company says net proceeds of $177 million from the stock offering will be used to redeem Lodgian’s Series A preferred stock ($116.2 million); fund capital expenditures ($35.2 million); and for general corporate purposes and the company’s “growth strategy.”

Lodgian emerged from Chapter 11 under the US Bankruptcy Code on Nov. 22, 2002 with 78 owned hotels. The hotels were owned by Lodgian subsidiaries Impac Hotels II LLC and Impac Hotels III LLC. When the two subsidiaries filed for court protection on Dec. 5, 2001, Lodgian listed total assets of $1 million and debt of $968.7 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.