The new money will used to redeem $60 million of 9.5% seniornotes due 2008, leaving a $100-million balance in the REIT'sreplacement program. The end result will be a 1.5% savings toshareholders when the stock is swapped. The latest sale brought 2.3million shares to market at $23.22 each at an 8.5% dividendyield.

"There is a lot of demand for our paper," Andrew J. Welch,FelCor's senior vice president and treasurer, tells GlobeSt.comabout an offering set up with two million shares and pumped upafter the starting bell rang on the sale. The offering allowed upto 15% extra shares to be sold at the discretion of the New YorkCity-headquartered bookrunners and joint lead managers, CitigroupGlobal Markets Inc. and Bear, Stearns & Co. Inc.

At the onset of last week's sale, it was projected $46 millionwould be raised and applied to retiring $50 million of the 2008notes. About two months ago, FelCor raised $115 million or $40million more than it expected on a market run with the samegoal--replacement capital for the 2008 notes.