MeriStar Hotels & Resorts (NYSE:MMH), the nation`s largest independent hotel management company, today announced that it had closed on a $100 million debt facility.
The facility was provided by Societe Generale, Citibank/Salomon Smith Barney, Lehman Brothers, Credit Lyonnais, and Scotia Capital. Net proceeds of the facility will be used to repay the existing $65 million facility with MeriStar Hospitality Corporation (NYSE:MHX).
``This facility provides the capacity to continue our expansion in the hospitality and leisure industries,`` said Paul Whetsell, chairman and CEO of MeriStar Hotels & Resorts and MeriStar Hospitality. ``Our capital structure has a prudent blend of debt and equity, which provides long-term stability and strong growth potential. The current funding leaves us with an interest coverage ratio of more than 5 times and only 2.5 times debt to EBITDA.``
MeriStar Hotels & Resorts operates 234 hospitality and leisure properties with more than 46,000 rooms and 10 golf courses in 34 states, the District of Columbia, Canada, Puerto Rico and the U.S. Virgin Islands.