Winston Hotels, Inc. (NYSE: WXH), today announced that the Company has closed on a $125 million line of credit provided by a group of four banks led by Wachovia Bank, N.A., as Agent, and including Branch Bank and Trust Company, SouthTrust Bank, N.A. and Centura Bank. The credit line, which is non-amortizing and secured by 28 operating hotel properties, has a 3-year term. The new facility maintains a variable interest rate depending upon corporate leverage. The current interest rate is based on LIBOR plus a spread of 2.00%, which is comparable to the spread of 1.45% under the previous facility. This credit facility replaces the Company`s previous $140 million line of credit.
Winston Hotels President, James D. Rosenberg, commented: “This new secured credit facility provides Winston Hotels with added financial flexibility as we explore further growth opportunities. We are excited to have consummated this transaction with such a reputable group of lenders and we look forward to continuing our productive relationship.”