FelCor Announces Public Offering of Common Stock

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IRVING, Texas--(BUSINESS WIRE)--

FelCor Lodging Trust Incorporated ("FelCor") FCH today announced that it is commencing a public offering of 14.500 million shares of its common stock (the "Offering"). FelCor expects to grant the underwriters a 30-day option to purchase up to 2.175 million additional shares of common stock.

J.P. Morgan and BofA Merrill Lynch will act as joint book-running managers for the Offering.

FelCor will use the net proceeds from this Offering to redeem its 8% Series C Cumulative Redeemable Preferred Stock and corresponding depositary shares. This redemption is part of FelCor's long-term strategy to strengthen its balance sheet and reduce leverage, improve its portfolio quality and enhance returns on investment. FelCor intends to use any remaining net proceeds from the Offering, along with cash on hand and proceeds from future asset sales, if and when available, to facilitate this strategy, which includes investing in future redevelopment projects and other growth opportunities. Pending application of the net proceeds from this Offering, FelCor may invest such net proceeds in short-term, interest bearing investments.

A shelf registration statement relating to the securities being offered has been filed with the Securities and Exchange Commission (the "SEC") and has become effective. This press release shall not constitute an offer to sell or a solicitation of an offer to purchase these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 134 under the Securities Act.

The Offering is being made only by means of a prospectus and the related prospectus supplement. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to these securities may be obtained from J.P. Morgan Securities LLC, Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or (866) 803-9204, or from BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department or by email to: dg.prospectus_requests@baml.com, or by visiting the EDGAR database on the SEC's web site at www.sec.gov.

About FelCor

FelCor, a real estate investment trust, owns a diversified portfolio of primarily upper-upscale and luxury hotels that are located in major and resort markets throughout the U.S. FelCor partners with leading hotel companies to operate its hotels, which are flagged under globally renowned names and premier independent hotels.

With the exception of historical information, the matters discussed in this news release include "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those currently anticipated. Certain of these risks and uncertainties are described in greater detail in our filings with the SEC. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

FelCor Lodging Trust Incorporated
Stephen A. Schafer, 972-444-4912
Senior Vice President
sschafer@felcor.com

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Posted In: Press Releases
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