July 15, 2009 (FinancialWire) — Interstate Hotels & Resorts (OTCBB: IHRI) (Current Market Cap: US$ 22.82 Mil.) said it has extended the maturity of its senior credit facility to March 2012 by converting the facility’s outstanding balance of $161.2 million to a new term loan.

The agreement also provides the company with an $8 million revolving credit line. The revised facility carries an interest rate of LIBOR plus 550 bps, with a 2% LIBOR floor plus additional payment-in-kind interest of 2% through March 2011 and 3% thereafter. The accrued PIK interest is payable at maturity.

According to Interstate, the terms of the credit facility require amortization of $20 million by March 9, 2010 and an additional $20 million by March 9, 2011. Amortization is expected to come from a combination of a non-recourse mortgage on currently unencumbered assets, asset sales and cash flow.

Arlington, Virginia-based Interstate Hotels & Resorts has ownership interests in 56 hotels and resorts, including seven wholly owned assets. Together with these properties, the company and its affiliates manage a total of 222 hospitality properties with around 45,500 rooms in 37 states, the District of Columbia, Russia, Mexico, Belgium, Canada and Ireland.

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