LA QUINTA MOTOR INNS LIMITED PARTNERSHIP ANNOUNCES DEBT EXTENSION AND CASH DISTRIBUTION
LA QUINTA MOTOR INNS LIMITED PARTNERSHIP ANNOUNCES
DEBT EXTENSION AND CASH DISTRIBUTION
SAN ANTONIO, Texas, Nov. 11 /PRNewswire/ -- La Quinta Motor Inns Limited Partnership (the "Partnership") (NYSE: LQP) announced today that its subsidiary limited partnership, LQM Operating Partners, L.P., has entered into an agreement to extend the maturity date of its $67,500,000 secured indebtedness to Aetna Life Insurance Company. The commitment provides for a three year extension of the maturity of such indebtedness until Nov. 1, 1994 with a graduated interest rate of 10.25 percent during the first year, 10.75 percent during the second year, and 11.25 percent during the third year. Additionally, the commitment requires principal repayments equaling 1/2 of 1 percent of the outstanding principal balance during the first year, 1-1/2 percent of the then outstanding principal in the second year and 2 percent of the then outstanding principal in the third year. The commitment is subject to satisfying normal and customary requirements for a closing to occur on or before Dec. 17, 1991.
Alan L. Tallis, president of La Quinta Realty Corp. stated that, "The board of directors of La Quinta Realty Corp. is pleased to have successfully negotiated a loan extension of the entire $67,500,000 debt upon terms which are believed consistent with current market conditions. With the uncertainty of the loan restructuring behind us, the board of La Quinta Realty can now focus on opportunities that may exist to further enhance unitholder value."
La Quinta Motor Inns Limited Partnership further announced today a third quarter distribution of $.20 per unit which will be paid on Dec. 6, 1991 to unitholders of record as of Nov. 30, 1991.
La Quinta Motor Inns Limited Partnership owns 31 inns and 20 restaurants in 15 states.
/CONTACT: Alan L. Tallis, president of La Quinta Realty, 512-366-6062/
(LQP) CO: La Quinta Motor Inns Limited Partnership ST: Texas IN: LEI SU: SH -- NY039 -- 2980 11/11/91 11:01 EST