LodgeNet Entertainment Corporation, provider of broadband, interactive TV services to the hospitality industry has closed on a new $225 million senior credit facility that was provided by a syndicate of lenders.
Lodgenet Entertainment Corporation is a leading distributor of broadband internet services. Specializing in the delivery of interactive television and internet access services to the lodging industry throughout the United States and Canada as well as select international markets, Lodgenet aim to serve the needs of the traveling public. (www.lodgenet.com)
With a previous credit facility of $150 million, Lodgenet now gain $75 million. The total credit facility of $225 million is comprised of $150 million Term B loan and a $75 million revolver, both with an initial five-year maturity.
CABC world Markets Corp. and Bear, Stearns & Co. Inc. acted as bookrunners and co-lead arrangers for the amenity.
As a result of the successful completion of this facility, LodgeNet now have increased financial flexibility and additional financial resources. Chief Financial Officer Gary H. Ritondaro claims that this will enable Lodgenet to carry out their accelerated growth plans. He estimates that by the end of 2003, they will have reached a positive cashflow position.
LodgeNet provides services to approximately 850,000 rooms(including more than 770,000 interactive guests in pay rooms) in more than 5,200 hotel properties. More than 250 million travellers have access to Lodgnet systems on an annual basis.