/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
HALIFAX, Dec. 5, 2014 /CNW/ - Holloway Lodging Corporation (TSX: HLC, HLC.DB, HLC.DB.A) ("Holloway") is pleased to announce that it has renewed its credit facility with its existing lender, HSBC Bank Canada on more favourable terms than previously in place.
The new credit facility provides Holloway with access to $25.0 million (previously $20.0 million) at an annual interest rate of prime plus 1.50% (previously prime plus 2.00%). The credit facility is secured by seven hotels and Holloway may request that the lender discharge its security against certain hotels provided Holloway would continue to satisfy the terms of the credit facility following any such discharge. The new credit facility matures on December 31, 2015.
At the date hereof, Holloway currently has $3.7 million drawn under the credit facility.
Jane Rafuse, Chief Financial Officer, stated "We wish to thank HSBC for their continued support. Since acquiring Royal Host in July 2014, we have reduced the balance drawn under our credit facility by $11.2 million, which is a testament to the cash flow generating capacity of our business."
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 36 hotels with 4,260 rooms. Holloway's shares and debentures trade on the TSX under the symbols HLC, HLC.DB and HLC.DB.A.
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, 2013 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.