November 16, 1998—ResortQuest International, Inc. (NYSE: RZT), the first branded company providing vacation rental and property management services in premier resort destinations throughout North America, today announced that it has received commitments to increase its $30 million credit facility to $55 million. The credit facility is used for general corporate purposes, including funding for ResortQuest`s ongoing acquisition of property management and vacation rental companies.
The LIBOR-based credit facility, arranged by NationsBank, N.A., will be amended under its existing terms and conditions to include SG and Union Planters Bank. The interest rate ranges from 125 basis points to 200 basis points above LIBOR, depending on the company`s outstanding borrowings and certain credit ratios.
``This increase in our credit facility, along with our cash flows from operations and our common stock shelf offering, which was declared effective by the Securities and Exchange Commission on Nov. 6, 1998, gives ResortQuest tremendous flexibility to pursue its strategic growth objectives,`` said David Sullivan, ResortQuest chairman and chief executive officer. ``Our recent purchase of Abbott Resorts put us ahead of our schedule to expand externally, and we continue to have an aggressive appetite for acquisitions.``
``Even with the expanded credit facility, ResortQuest continues to be prudently and conservatively leveraged with an approximate 35 percent debt to equity ratio,`` said Jeff Jarvis, ResortQuest`s chief financial officer. ``The expanded credit facility reflects our new and existing banks` confidence in our growth potential. We look forward to working with our new banks, along with our original banks, NationsBank and First Tennessee Bank.``
ResortQuest provides the first one-stop resource for vacation home and condominium rentals in premier resort destinations in North America. ResortQuest currently manages 13,000 vacation rental properties, which represents a 25 percent increase in its portfolio since the company was formed in May 1998. ResortQuest`s current locations include Gulf Shores, Ala.; Aspen, Breckenridge and Telluride, Colo.; Bethany Beach, Del.; Captiva Island, Destin/Ft. Walton Beach and Sanibel Island, Fla.; St. Simons Island, Ga.; Hawaii, Maui, Oahu, and Kauai, Hawaii; Nantucket, Mass.; the Outer Banks of North Carolina; Park City, Utah; and Whistler, British Columbia.
ResortQuest maintains corporate offices in Memphis, Tenn. The company`s website address is www.resortquest.com.