MeriStar Closes on $50MM LOC

MeriStar Hospitality Corp., a real estate investment trust based in Arlington, Va., has closed on a new $50 million senior credit facility secured by six of its hotels.The three-year facility will carry an interest rate of 450 basis points over the London interbank offered rate and will be used for working capital, the REIT said. The facility, arranged by Lehman Brothers, replaced an existing $50 million credit facility with no outstanding borrowings, MeriStar said. The hotels securing the facility are: Embassy Suites Tucson International Airport, Tucson, Ariz.; Doubletree Bradley International Airport, Windsor Locks, Conn.; The Westin Beach Resort Key Largo, Key Largo, Fla.; Doubletree Guest Suites Atlanta-Galleria, Atlanta; Radisson Hotel Annapolis, Annapolis, Md.; and The Westin Oklahoma City, Oklahoma City. The company also announced that it has reduced the outstanding balance on its 8.75% senior subordinated notes due 2007 by $25.7 million through exchanges of 4.7 million shares of common stock. The REIT can be found online at http://www.meristar.com.