Red Lion Hotels Corp. agreed to a $30 million five-year term loan facility and a $10 million five-year revolver from Deutsche Bank, Capital One and Raymond James.
The term loan facility and revolver will be used by Red Lion for future acquisitions. Funds from the $30 million term loan will be primarily used for the company's Knights Inn brand acquisition from Wyndham Hotel Group LLC, a subsidiary of Wyndham Worldwide Corp., which closed May 14.
With the brand acquisition of Knights Inn, Red Lion acquired approximately 350 economy segment franchise contracts across North America and a pipeline of additional contracts.
The company also said it will use proceeds from the future sale of five hotels being marketed for disposition toward reducing the 20-year amortizing loan balance.
