HOSPITALITY FRANCHISE SYSTEMS, INC.
PARSIPPANY, N.J., March 10 /PRNewswire/ -- Hospitality Franchise Systems, Inc. (NYSE: HFS) reported today that the Standard & Poor's Rating Group has rated the senior debt of the company as investment grade (BBB). The rating was issued in contemplation of the refinancing of the company's existing bank debt and in connection with the additional indebtedness which will be incurred to consummate the acquisition of the Super 8 franchise system for $125 million. The company has previously disclosed that it intends to refinance its current indebtedness of $270 million and increase debt to approximately $400 million in connection with the Super 8 transaction. Stephen P. Holmes, executive vice president and CFO stated: "Based on this rating, we anticipate lowering our effective annual interest costs by approximately 250 basis points." The implied senior debt rating assigned by Standard & Poor's reflects their current opinion of the company's financial capacity to meet its obligations under senior debt obligations and is not a recommendation to buy, hold or sell any financial obligations of the company. Hospitality Franchise Systems, Inc., the world's largest franchiser of hotel rooms is a publicly held company with its stock traded on the New York Stock Exchange under the symbol HFS. The company has more than 2,500 Days Inn, Howard Johnson and Ramada hotels with over 300,000 rooms in the United States, Canada, Mexico, India and Europe. -0- 3/10/93 /CONTACT: Stephen P. Holmes of Hospitality Franchise Systems, Inc., 201-952-8423/ (HFS)
CO: Hospitality Franchise Systems, Inc. ST: New Jersey IN: LEI SU: RTG
WB-OS -- NY062 -- 4806 03/10/93 16:13 EST
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|Date:||Mar 10, 1993|
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