FelCor Prices Public Offering of Common Stock

FelCor Lodging Trust Inc., Irving, Texas, priced its public offering of 27.5 million shares of its common stock at $5.50 per share, giving the company estimated net proceeds of $145 million. The REIT granted the underwriters a 30-day option to purchase up to 4.125 million additional shares of common stock, which if exercised, will up the net proceeds to approximately $167 million. JPMorgan Securities Inc., Goldman Sachs & Co., B of A Merrill Lynch and Deutsche Bank Securities Inc. acted as joint book-running managers for the offering. Citi and FBR Capital Markets acted as senior co-managers. JMP Securities and Keefe, Bruyette & Woods acted as co-managers. FelCor intends to use the net proceeds from the offering, together with cash on hand, to repay or repurchase certain of its mortgage debt at substantial discounts and for acquisition opportunities. It may invest the proceeds in short-term, interest-bearing investments until it elects to use them for the above purposes. The offering is expected to close on June 22.