Press Release: La Quinta Corporation
April 2, 2002
DALLAS, TX -- La Quinta® Corporation (NYSE: LQI; the ``Company'') announced yesterday that it has amended certain
terms of its $375 million credit facility.
The amendment provides for the relaxation of the maximum total leverage ratio and the minimum fixed charge coverage
ratio through March 31, 2003 and a reduction in the minimum lodging EBITDA covenant. Also included in the amendment
are some modifications to certain definitions and other items. Pricing remained unchanged. Additional information
will be provided when the Company's first quarter Form 10-Q is filed.
``We are pleased with the amendment to our credit facility and appreciate the strong support provided by our lenders
as we continue to manage through the effects of September 11, 2001 on our business,'' said David L. Rea, Executive
Vice President and Chief Financial Officer. ``The amendment is consistent with our previously announced expectation
of a difficult first half in 2002 followed by a stronger second half.''
At December 31, 2001, the Company had $145 million of bank notes outstanding under its term loan and no borrowings
under its $225 million revolving line of credit. Total indebtedness at December 31, 2001 was $1 billion of which
$35 million matures in 2002. The Company had $138 million of cash at December 31, 2001.
About La Quinta Corporation
Dallas-based La Quinta Corporation (NYSE: LQI), a mid-scale limited service lodging company, owns, operates or
franchises over 300 La Quinta Inns and La Quinta Inn & Suites in 33 states. This news release, as well as other
information about La Quinta, is available on the Internet at www.laquinta.com.
SOURCE: La Quinta Corporation