SILVER SPRING, Md., (June 29, 2001) - Choice Hotels International, Inc., (NYSE:CHH) today announced it has refinanced its senior credit facility. The nine-bank facility, in the amount of $260 million, extends through June 2006, and contains a feature allowing Choice to obtain additional commitments up to $325 million.
The proceeds from the financing will be used for general corporate purposes, including working capital, debt repayment, stock repurchases, investments and acquisitions.
“We are very pleased with the successful syndication, which includes many of the premier lenders in the hospitality industry,” said Charles A. Ledsinger, Jr., president and chief executive officer. “The new facility leverages our investment grade rating, provides greater flexibility and makes this readily available capital source an important strategic advantage as we grow our business.”
The facility is led by The Chase Manhattan Bank, as issuing bank and administrative agent, J. P. Morgan Securities Inc., as sole bookrunner and lead arranger, Fleet National Bank, as syndication agent, Salomon Smith Barney Inc., as syndication agent, and First Union National Bank, as documentation agent.
Choice Hotels International is the world`s second largest lodging franchisor, marketing more than 5,000 hotels open or under development in 43 countries under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep, Econo Lodge, MainStay Suites and Rodeway Inn brand names. Choice was recently named the #1 lodging franchise chain in Entrepreneur Magazine`s annual Franchise 500. For more information on Choice, visit the company`s web site at www.choicehotels.com.