Interstate Hotels & Resorts amends, upsizing term loan and revolver

By Sara Rosenberg

New York, May 30 - Interstate Hotels & Resorts, Inc. amended its senior secured credit facility, increasing the term loan by $50 million to $115 million and the revolver by $25 million to $85 million, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

In addition, the amendment provides for a $75 million accordion feature.

Furthermore, the amendment revised the leverage ratio to less than 5.75 to 1.00 at all times, and the debt service coverage ratio was changed to no less than 2.25 to 1.00 for the rolling period ending Dec. 31, 2008 and 2.50 to 1.00 for each rolling period thereafter.

Proceeds from the incremental term loan debt, along with cash on hand, were used to fund the acquisition of the Westin Atlanta Airport Hotel for $74 million.

The amendment was completed on May 24.

Interstate Hotels & Resorts is an Arlington, Va.-based hotel management company.

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