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Reflect Lodging Focus |
DALLAS (June 11, 2001) -- The Meditrust Companies ("Meditrust" or "the Companies") (NYSE: MT) announced today the closing of a $350 million credit facility, consisting of a $200 million revolving line of credit and a $150 million term loan. This bank debt has an initial interest rate of LIBOR plus 350 basis points and matures on May 31, 2003 with extensions available at the Companies' option. Proceeds were used to payoff existing bank term debt maturing on July 17, 2001. The new facility may also be used towards the repayment of other maturing debt, funding of the Companies' future growth, and general corporate purposes. Co-Lead arrangers on the transaction were CIBC World Markets Corp. and Fleet Securities Inc. Co-Documentation agents on the transaction were Lehman Brothers and J.P. Morgan Chase & Co. The Companies also announced today the completion of healthcare asset sales totaling approximately $42 million since announcing the $441 million healthcare transaction on April 3, 2001. The proceeds from these healthcare transactions have been applied to debt reduction and have reduced 2001 bank term debt maturities from $86 million at April 3, 2001 to $44 million at June 8, 2001. Upon closing the new credit facility, the Companies have $135 million of remaining 2001 debt maturities with $169 million of cash-on-hand and no current borrowings under the new $200 million revolving line of credit. David L. Rea, Executive Vice President, Chief Financial Officer and Treasurer, said, "The completion of this financing, coupled with our free cash flow and successful healthcare asset sales over the past year and a half, adds additional strength to our balance sheet and gives us substantial flexibility in our capital structure. Our credit profile is greatly improved from a year ago. Pro forma for 2001 healthcare asset sales, debt to total capitalization has been reduced from 48% at March 31, 2000 to 33% at March 31, 2001." In addition, the Companies also announced today their intention to change the Companies' names. Meditrust Corporation will be renamed La Quinta Properties, Inc. and Meditrust Operating Company will be renamed La Quinta Corporation. The Companies will continue to trade as a paired-share REIT and, together, will be referred to as "La Quinta". The name change is expected to occur on or about June 20, 2001, at which time, trading will be conducted under the new ticker symbol "LQI". Until that time, the Companies will continue to trade under the ticker symbol "MT". Commenting on the name change, Francis W. "Butch" Cash, President and
Chief Executive Officer, said, "Our company no longer bears resemblance
to the Meditrust of a year ago. Over 80 percent of our revenue, EBITDA
and real estate assets are now derived from the La Quinta lodging brand.
This name change is consistent with our plan of being a lodging focused
company. La Quinta has a long and successful history and we are excited
about its future."
La Quinta Inns, Inc. owns, operates or franchises 229 Inns and 71 Inn
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Certain matters discussed herein may constitute "forward-looking statements" within the meaning of the federal securities laws.
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Teresa Ferguson La Quinta Inns, Inc. 214/492-6746 [email protected] |
Also See | Diplomat Hotel Corp. Becomes La Quinta Inns First Franchisee / Feb 2001 |
Meditrust and La Quinta Inns Complete Merger / July 1998 |