ResortQuest Completes $50 Million Senior Secured Notes Offering; Creates New Financing Source To Fun

ResortQuest International, Inc. (NYSE: RZT), the first brand name and online booking service ( in vacation condominium and home rentals, sales, and property management services, today announced that it has completed the placement of $50 million of senior secured notes. Net proceeds from the senior secured notes are being used primarily to repay the outstanding balance on the company`s existing credit facility, and also will provide additional capital to fund ResortQuest`s ongoing acquisition program.

The senior secured notes, which mature in 2004, have a fixed 9.06 percent interest rate. Banc of America Securities LLC arranged the private placement with five insurance companies: Teachers Insurance and Annuity Association; PPM America, Inc.; Cigna Investments, Inc.; Massachusetts Mutual Life Insurance Company; and United of Omaha Insurance Company.

“We`re extremely pleased with the caliber of participating companies and the response to this offering, which was oversubscribed,” said David Sullivan, ResortQuest chairman and chief executive officer. “We currently are in active negotiations with a number of acquisition candidates and expect to complete certain transactions within the next 30 days.”


“The $50 million senior secured notes placement allows us to pay off our revolving credit facility, which will then be available to fund future acquisitions,” said Jeff Jarvis, senior vice president and chief financial officer. “This insurance company financing provides us an additional source of cash, more flexibility to fund acquisitions and reduces our dependency on traditional bank financing.



“With today`s closing, the company has approximately $60 million of cash and borrowing availability to fund the cash portion of future acquisitions,” Jarvis added. “In addition, the Securities and Exchange Commission declared effective the post-effective amendment to our common stock shelf registration statement, which will allow us once again to issue registered common stock in connection with acquisitions.”


Memphis, Tenn.-based ResortQuest provides the first one-stop resource for vacation condominium and home rentals in 30 premier destination resorts throughout the United States and Canada. ResortQuest also is the first branded vacation rental, property management and real estate sales company to offer online booking through ResortQuest`s current locations include Gulf Shores, Ala.; Scottsdale/Phoenix, Ariz.; Palm Desert and Palm Springs, Calif.; Aspen, Breckenridge, Crested Butte, Dillon and Telluride, Colo.; Bethany Beach, Del.; Captiva Island, Destin, Ft. Myers, Ft. Walton Beach and Sanibel Island, Fla.; St. Simons Island, Ga.; Hawaii, Maui, Oahu, and Kauai, Hawaii; Nantucket, Mass.; Big Sky, Mont.; the Outer Banks of North Carolina; Sunriver, Ore.; Hilton Head Island, S.C.; Park City, Utah; and Whistler, British Columbia.

The matters in this press release include “forward looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are qualified by cautionary statements contained herein and in ResortQuest International`s filings with the Securities and Exchange Commission.