| CHICAGO, Nov. 4, 1999 - Heller Financial, Inc. (NYSE: HF), announced
today that its real estate finance business group is renewing its commitment
to financing hotel projects and has launched a new loan program focusing
on middle-market hotel lending. The new program provides core floating
rate debt up to 70% loan-to-value (LTV) and enhanced floating rate debt
up to 80% LTV for acquisition and turnaround projects.
�Heller is a highly experienced real estate lender, with years of hotel
lending expertise,� said Mike Rowan, Manager, Hotel Lending Group. �This
new initiative will allow us to leverage that experience with a standalone
program that will help us satisfy unmet demand and fill today�s hotel financing
gap.� Hotel financing has become more difficult to obtain in certain market
segments, he said, because of oversaturation or lenders� uncertainty about
underwriting hotel projects late in the current real estate cycle. �But
Heller has a long tradition of increasing its focus in markets or products
that are underserved,� Rowan noted. �We are very good at underwriting
risk and will carefully target projects that provide a strong-risk adjusted
return.�
Specifically, Heller will be highly selective in the opportunities it
pursues, focusing primarily on better brands in the full-service sector
that have demonstrated consistent performance through previous downturns.
The new Heller program also focuses on debt transactions, avoiding the
risks associated with highly leveraged transactions. To supplement its
own hotel expertise, Heller has retained a well-known industry consultant
to advise on every transaction. Heller also will tap its regional offices
for local market expertise. Since 1996, Heller has closed more than
$300 million in hotel loans. The company expects to close slightly less
than that amount in 2000 alone.
�We have marketed this new loan program throughout the country, and
we are very encouraged by the positive response,� said Rowan. �This fills
a need. In addition, the market knows it can rely on Heller to stand by
its initial terms and do everything it can to help developers and owners
meet aggressive timetables.� The typical loan cycle will be 30-45 days
from application through closing.
| Heller Financial, Inc., is a worldwide commercial finance
company providing a broad range of financing solutions to middle-market
and small business clients. With approximately $17 billion in total assets,
Heller offers equipment financing and leasing, sales finance programs,
collateral- and cash flow-based financing, financing for healthcare companies
and financing for commercial real estate. |
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