PALM BEACH, Fla.--(BUSINESS WIRE)--Innkeepers USA Trust (OTC: INKPP) (“Innkeepers” or the “Company”), a real estate investment trust and a leading owner of upscale extended-stay hotel properties throughout the United States, filed a motion on January 14, 2011 seeking authority from the Court presiding over the Company’s pending chapter 11 cases to enter into a commitment letter for a stalking horse bid submitted by Five Mile Capital II Pooling REIT LLC / Lehman ALI Inc. (the “Stalking Horse Bid”).
The Stalking Horse Bid contemplates an enterprise-level transaction involving the Company’s entire portfolio and is valued at $1.14 billion (including approximately $790.5 million of debt financing and approximately $348.2 million of equity).
The Court has scheduled a hearing for March 8, 2011, to consider approval of (among other things) (1) the Stalking Horse Bid, (2) bidding procedures governing an auction at which overbids to the Stalking Horse Bid will be solicited, and (3) a break-up fee to Five Mile / Lehman if the Company completes a transaction other than the Stalking Horse Bid (and certain other conditions are satisfied). The Stalking Horse Bid includes $622.5 million of mortgage debt provided by an existing creditor. This creditor has agreed to make this debt available to other bidders at the auction that want to use it and that meet certain conditions.
“We are pleased with the progress of our restructuring process thus far. The bid submitted by Five Mile and Lehman provides both baseline recoveries for Innkeepers’ constituents and a benchmark for the valuation of our portfolio,” said Marc Beilinson, the Company’s Chief Restructuring Officer.
“The Company can and will continue to fully consider all other value-maximizing restructuring proposals it may receive, whether for enterprise-based transactions, asset pools or individual assets,” said Beilinson. “Our process is ongoing and we are actively soliciting interest, both in advance of the March hearing and afterward, in accordance with the bid procedures (if approved at the hearing). As such, we encourage interested parties to submit bids at any time for enterprise-based transactions or for individual or collections of assets.”
Moelis & Company LLC (“Moelis”) has been retained by Innkeepers to represent the Company as its exclusive financial advisor in connection with a potential transaction. Interested parties who have not already done so, are encouraged to reach out to Steve Moore at Moelis (email@example.com) for further information involving the marketing process and accessing detailed financial and operational information on the Company and its assets.
The chapter 11 cases are pending in the United States Bankruptcy Court for the Southern District of New York. The description of the Stalking Horse Bid and the other matters discussed above are qualified by reference to the motion for approval of the Stalking Horse Bid, and the exhibits to the motion, filed with the Court on January 14, 2011. For access to the motion, other court documents and other general information about the chapter 11 cases, please visit www.omnimgt.com/innkeepers.
About Innkeepers USA Trust
Innkeepers USA Trust is a real estate investment trust and a leading owner of upscale and extended-stay hotel properties throughout the United States. The Company currently owns interests in 72 hotels with approximately 10,000 rooms in 19 states and the District of Columbia.
Forward Looking Statements: This press release contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, the impact of our bankruptcy filing, our ability to refinance, extend or repay our near and intermediate term debt, our substantial level of indebtedness and interest rates, hotel and credit market conditions. The Company disclaims any obligation to update any forward-looking statements.