SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 1, 1997
FELCOR SUITE HOTELS, INC.
(Exact name of registrant as specified in its charter)
Maryland 0-24250 72-2541756
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
545 E. John Carpenter Freeway, Suite 1300, Irving, Texas 75062
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 444-4900
(Not Applicable)
(Former name or former address, if changed since last report)
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Item 5. Other Events
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The Registrant files herewith the exhibit listed in Item 7(c) below.
Item 7(c). Exhibits
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The following exhibit is furnished in accordance with Item 601 of
Regulation S-K:
99 Press Release dated October 1, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FELCOR SUITE HOTELS INC.
(Registrant)
Date:October 6, 1997 By: /s/Lawrence D. Robinson
---------------------------------------------
Lawrence D. Robinson
Senior Vice President, General Counsel and
Secretary
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INDEX TO EXHIBITS
Exhibit Sequentially
No. Exhibit Numbered Page
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99 Press Release dated October 1, 1997
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FOR IMMEDIATE RELEASE Contacts: Thomas J. Corcoran, Jr.
- --------------------- President & CEO
William S. McCalmont
Senior Vice President & CFO
(972) 444-4900
FELCOR SUITE HOTELS, INC.
ANNOUNCES SUCCESSFUL PRIVATE
PLACEMENT OF $300 MILLION IN LONG TERM DEBT
$175 Million of 73/8% Senior Notes Due 2004
$125 Million of 75/8% Senior Notes Due 2007
IRVING, TEXAS....October 1, 1997 - FelCor Suite Hotels, Inc. (NYSE:FCH),
today announced that FelCor Suites Limited Partnership has completed the private
placement of $300 million in aggregate principal amount of its long term senior
unsecured notes. Due to the favorable rates and strong market demand, the
Company increased the size of its note offering from the $150 million previously
announced. The notes were issued in two maturities, consisting of $175 million
of 73/8% Senior Notes Due 2004 priced at 99.489% to yield 7.47% and $125 million
of 75/8% Senior Notes Due 2007 priced at 99.209% to yield 7.74%, and are
guaranteed by FelCor Suite Hotels, Inc. and certain of its subsidiaries. FelCor
Suite Hotels, Inc. serves as the sole general partner of, and owns a 92.6%
equity interest in, FelCor Suites Limited Partnership, which holds the Company's
interests in 71 hotel properties.
The approximately $294 million in net proceeds from the sale of the notes
was used primarily to repay an $85 million floating rate secured term loan, to
fund the $51 million purchase price of the Sheraton(R) (Society Hill) hotel in
Philadelphia, Pennsylvania announced earlier today and to pay down the Company's
$550 million unsecured revolving line of credit by approximately $155 million,
leaving a current balance under the line of approximately $91 million. Following
the application of such proceeds, the Company's consolidated indebtedness
amounts to approximately $428 million, of which approximately 90% is fixed rate
debt and 10% is floating rate debt. In addition, the Company has reduced its
consolidated secured indebtedness to approximately $12 million, leaving the
Company with unencumbered assets of approximately $1.6 billion, at cost.
"We believe that the addition to our capital structure of this attractively
priced fixed-rate long term debt is an important part of our conservative
capital strategy," said Thomas J. Corcoran, Jr., FelCor's President and CEO.
"The use of low-cost debt provides a means of reducing our cost of funds and
enhancing returns to our shareholders."
- more -
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Placement of $300 Million in Senior Notes
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FelCor Suite Hotels, Inc., which was formed in July 1994 by the founding
President of Embassy Suites(R) hotels, Hervey A. Feldman, and his partner and
long-time hotel and restaurant executive Thomas J. Corcoran, Jr. is the only
real estate investment trust (REIT) focusing on upscale, full-service, all-suite
hotels and is the world's largest owner of Embassy Suites hotels. Its current
portfolio of 71 hotels contains an aggregate of 17,486 suites and rooms and
consists of 51 Embassy Suites hotels (of which 27 were converted from other
brands), one hotel in the process of conversion to an Embassy Suites hotel; 12
Doubletree Guest Suites(R) hotels; six Sheraton hotels (four of which are
up-scale, full-service traditional non-suite hotels); and one Hilton Suites(R)
hotel. FelCor's total market capitalization is in excess of $2.2 billion.
With the exception of historical information, the matters discussed in this
news release include "forward looking statements" within the meaning of the
federal securities laws and are qualified by cautionary statements contained
herein and in FelCor's filings with the Securities and Exchange Commission.
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