Home Inns plans $300 million term loan for purchase of Motel 168

By Sara Rosenberg

New York, June 2 - Home Inns & Hotels Management Inc. has received a commitment for a $300 million term loan to help fund its acquisition of Motel 168 International Holdings Ltd., according to a 6-K filed with the Securities and Exchange Commission on Thursday.

Credit Suisse Securities and J.P. Morgan Securities are the lead banks on the deal.

Under the agreement, Home Inns is buying Motel 168 for a total of $470 million, with approximately $305 million being paid in cash and the remainder coming from 8.15 million of Home Inns' ordinary shares.

Other funds for the transaction will come from cash on hand.

Closing is expected in the fourth quarter, subject to customary conditions and Chinese regulatory approvals.

Home Inns is a Shanghai-based economy hotel chain in China. Motel 168 is a branded economy hotel operator in China.

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