Press Release: The Meditrust Companies
June 12, 2001
DALLAS, TX -- The Meditrust Companies (``Meditrust'' or ``the Companies'') (NYSE: MT) announced yesterday the closing
of a $350 million credit facility, consisting of a $200 million revolving line of credit and a $150 million term
loan. This bank debt has an initial interest rate of LIBOR plus 350 basis points and matures on May 31, 2003 with
extensions available at the Companies' option. Proceeds were used to payoff existing bank term debt maturing on
July 17, 2001. The new facility may also be used towards the repayment of other maturing debt, funding of the Companies'
future growth, and general corporate purposes. Co-Lead arrangers on the transaction were CIBC World Markets Corp.
and Fleet Securities Inc. Co-Documentation agents on the transaction were Lehman Brothers and J.P. Morgan Chase
& Co.
The Companies also announced today the completion of healthcare asset sales totaling approximately $42 million
since announcing the $441 million healthcare transaction on April 3, 2001. The proceeds from these healthcare transactions
have been applied to debt reduction and have reduced 2001 bank term debt maturities from $86 million at April 3,
2001 to $44 million at June 8, 2001. Upon closing the new credit facility, the Companies have $135 million of remaining
2001 debt maturities with $169 million of cash-on-hand and no current borrowings under the new $200 million revolving
line of credit.
David L. Rea, Executive Vice President, Chief Financial Officer and Treasurer, said, ``The completion of this financing,
coupled with our free cash flow and successful healthcare asset sales over the past year and a half, adds additional
strength to our balance sheet and gives us substantial flexibility in our capital structure. Our credit profile
is greatly improved from a year ago. Pro forma for 2001 healthcare asset sales, debt to total capitalization has
been reduced from 48% at March 31, 2000 to 33% at March 31, 2001.''
In addition, the Companies also announced today their intention to change the Companies' names. Meditrust Corporation
will be renamed La Quinta Properties, Inc. and Meditrust Operating Company will be renamed La Quinta Corporation.
The Companies will continue to trade as a paired-share REIT and, together, will be referred to as ``La Quinta''.
The name change is expected to occur on or about June 20, 2001, at which time, trading will be conducted under
the new ticker symbol ``LQI''. Until that time, the Companies will continue to trade under the ticker symbol ``MT''.
Commenting on the name change, Francis W. ``Butch'' Cash, President and Chief Executive Officer, said, ``Our company
no longer bears resemblance to the Meditrust of a year ago. Over 80 percent of our revenue, EBITDA and real estate
assets are now derived from the La Quinta lodging brand. This name change is consistent with our plan of being
a lodging focused company. La Quinta has a long and successful history and we are excited about its future.''
The Companies presented at the National Association of Real Estate Investment Trusts' Institutional Investor Forum
in San Francisco on June 7, 2001. A copy of the Companies' investor relations presentation is available on the
Companies' website at www.reit.com .
About The Meditrust Companies
The Meditrust Companies (NYSE: MT), a real estate investment trust headquartered in Dallas, Texas, consists of
Meditrust Corporation, a REIT, and Meditrust Operating Company. Meditrust Corporation's portfolio consists of 299
lodging facilities, 94 assisted living facilities, 11 long-term care facilities, four medical office buildings
and nine other healthcare facilities. Meditrust Operating Company operates all of the lodging facilities under
the La Quinta brand name. Today's news release as well as other news about The Meditrust Companies is available
on the Internet at www.reit.com .
About La Quinta Inns, Inc.
La Quinta Inns, Inc. owns, operates or franchises 229 Inns and 71 Inn & Suites in 28 states. La Quinta is the
lodging division of The Meditrust Companies and is also headquartered in Dallas. For more information about La
Quinta, please visit its Web site at www.laquinta.com .
Certain matters discussed herein may constitute ``forward-looking statements'' within the meaning of the federal
securities laws. The Meditrust Companies (the ``Companies''), consisting of Meditrust Corporation (``Realty'')
and Meditrust Operating Company (``Operating''), intend such forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements, and are including this statement for purposes of complying with
these safe harbor provisions. Although the Companies believe the forward-looking statements are based on reasonable
assumptions, the Companies can give no assurance that their expectations will be attained. Actual results and the
timing of certain events could differ materially from those projected in or contemplated by the forward-looking
statements due to a number of factors, including, without limitation, the timing of the completion of the corporate
mechanics to change the Companies' names, general economic and real estate conditions, the identification of satisfactory
prospective buyers for healthcare related assets of the Companies' and the availability of financing for such prospective
buyers, the availability of financing for the Companies' capital investment program, interest rates, competition
for hotel services and healthcare facilities in a given market, competition in franchising the Companies' brands,
the enactment of legislation further impacting the Companies' status as a paired share real estate investment trust
(``REIT'') or Realty's status as a REIT, the further implementation of regulations governing payments to, as well
as the financial conditions of, operators of Realty's healthcare related assets, including the filing for protection
under the US Bankruptcy Code by any operators of the Companies healthcare assets, the impact of the protection
offered under the US Bankruptcy Code for those operators who have already filed for such protection, and other
risks detailed from time to time in the filings of Realty and Operating with the Securities and Exchange Commission
(``SEC''), including, without limitation, the risks described in Item 7 of the Joint Annual Report on Form 10-K
entitled ``Certain Factors You Should Consider.''
SOURCE: The Meditrust Companies