Holloway Lodging Corporation enters into credit agreement
/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
HALIFAX, Feb. 10, 2014 /CNW/ - Holloway Lodging Corporation (TSX: HLC) ("Holloway") is pleased to announce that it has entered into an additional credit facility consisting of a $17.0 million term loan (the "Term Loan") to be used for general corporate purposes and the acquisition of additional hotels.
The Term Loan has an interest rate of 6.5% and does not require any principal payments until the maturity on March 31, 2016. The maturity date may be extended 12 months at Holloway's option provided certain conditions are satisfied, including there being no event of default then continuing under the Term Loan. Holloway may prepay all or part of the Term Loan at any time following the six-month anniversary of the first loan draw. The Term Loan may be drawn up to three times on or prior to December 31, 2014, provided that the lender must consent to the use of proceeds drawn. The Term Loan is secured by a negative pledge on one of Holloway's hotel properties, a corporate general security agreement and an assignment of the equity interests of certain subsidiaries. The Term Loan is callable by the lender upon a change of control of Holloway that is not approved by the lender in advance.
ABOUT HOLLOWAY LODGING CORPORATION
Holloway is a real estate corporation focused on acquiring, owning and operating select and limited service lodging properties and a small complement of full service hotels primarily in secondary, tertiary and suburban markets. Holloway owns 18 hotels with 1,798 rooms. Holloway's shares trade on the TSX under the symbol HLC.
This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to Holloway's future outlook and anticipated events or results and may include statements regarding Holloway's future financial position, business strategy, financial results, plans and objectives. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information is subject to certain factors, including risks and uncertainties, that could cause actual results to differ materially from what Holloway currently expects and there can be no assurance that such statements will prove to be accurate. Some of these risks and uncertainties are described under "Risk Factors" in Holloway's annual information form for the year ended December 31, 2012 which is available on Holloway's profile on the SEDAR website at www.sedar.com. Holloway does not intend to update or revise any such forward-looking information should its assumptions and estimates change.
SOURCE Holloway Lodging CorporationFor further information:
Michael Rapps, Chairman, at (416) 855-1925 or Jane Rafuse, Chief Financial Officer, at (902) 443-5101.