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WASHINGTON, DC-Interstate Hotels & Resorts has converted its senior credit facility of $161.2 million into a new term loan. The change extends the maturity out to March 2012. At the same time, the company is also receiving an $8 million revolving credit line under the new agreement. Banc of America Securities was sole lead arranger and sole book runner and Bank of America, is the administrative agent. Interstate Hotels & Resorts, which is headed by Thomas Hewlett, did not return a call to GlobeSt.com in time for publication.

The revised facility has an interest rate of LIBOR plus 550 basis points, with a 2% LIBOR floor plus additional PIK interest–payment-in-kind–of 2% through March 2011 and 3% thereafter. The accrued PIK interest is payable at maturity. The terms require amortization of $20 million by March 9, 2010 and an additional $20 million by March 9, 2011.

According to a prepared statement by CFO Bruce Riggins, the credit facility extension is giving the company much greater flexibility to execute its business plan. “We expect to be in compliance with all financial covenants for 2009.”

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