Winston Hotels, Inc. (NYSE: WXH), today announced that the Company recently completed an interest rate swap on $50 million of its outstanding variable rate debt under its $125 million line of credit (the “Line”).
Branch Banking & Trust Company conducted the transaction.
The term of the interest rate swap begins March 31, 2003 and matures February 27, 2004. This transaction effectively replaces the Company`s variable interest rate based on 30-day LIBOR on $50 million of the Line with a fixed interest rate of 1.505%. The Company`s interest rate spread on the Line is currently 2.00%, resulting in a total fixed interest rate of 3.505% on $50 million of the Line for the term of the interest rate swap.
“Locking in a more attractive interest rate offers the company greater flexibility to deal with changing markets conditions and mitigates interest rate risk,” said Joe Green, Chief Financial Officer of Winston Hotels, Inc. “Moreover, we believe that by implementing our latest interest rate strategy, our “all-in” interest rate compares very favorably to our peer group.”
About the Company
Raleigh, North Carolina-based Winston Hotels, Inc., is a real estate investment trust specializing in the development, acquisition, repositioning and active asset management of premium limited-service, upscale extended-stay and full-service hotels, with a portfolio increasingly weighted toward the leading brands in the lodging industry`s upscale segment. The Company currently owns or is invested in 52 hotels with 7,200 rooms in 17 states, which includes: 44 wholly-owned properties with 6,141 rooms; a 49 percent ownership interest in three joint venture hotels with 453 rooms; a 13.05 percent ownership interest in two joint venture hotels with 215 rooms; and a mezzanine financing interest in three hotels with 391 rooms. For more information about Winston Hotels, visit the Winston Hotels Web site, www.winstonhotels.com.