FelCor Lodging Turst Jumps 19% on Hotel Sale Agreement
FelCor, based in Irving, Texas, rose 19 percent to $4.28 after agreeing to sell six “non-strategic” hotels for $103 million to an undisclosed buyer. It plans to repay $73 million of secured debt and other costs when the sale closes and use the remaining $30 million to pay part of its accrued preferred dividends.
The transaction is expected to close late in the second quarter. Trading volume was almost 6 million shares, more than 10 times the 20-day average volume of 588,135. The shares have gained 40 percent in 2012.
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