/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE
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 Corporation
For further information:
Michael Rapps, Chairman, at (416) 855-1925 or Jane Rafuse, Chief Financial Officer, at (902) 443-5101.