Hotel REIT Gets Waiver From Lenders

Interstate Hotels & Resorts, Arlington, Va., has received a waiver from the lenders of its senior credit facility through June 30.The waiver covers a violation of the facility's terms that require Interstate's common stock maintain its listing on the New York Stock Exchange. The NYSE suspended trading of Interstate's stock on March 12 after the company failed to meet the minimum $15 million market capitalization requirement. The real estate investment trust currently trades on the over-the-counter market as it waits for the NYSE to rule on its appeal. As part of the waiver agreement, the interest rate on the credit facility was increased 75 basis points to LIBOR plus 350 basis points. In addition, the company paid a 50 basis point fee to consenting lenders, and the facility size was permanently reduced to $173.3 million from $198.0 million. The new facility size provides for $10 million of borrowing capacity, of which $6 million is available through June 30. The company does not expect to draw on the facility during the waiver period.