DiamondRock Announces Successful Debt Modification
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DiamondRock Announces Successful Debt Modification
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-03-30
DiamondRock Hospitality Company ("DiamondRock") (NYSE:DRH) today announced it amended certain provisions of the limited recourse mortgage loan (the "Loan") secured by Frenchman's Reef & Morning Star Marriott Beach Resort. The lender provided DiamondRock with a waiver for any penalty interest and an extension to December 31, 2010 and December 31, 2011, respectively, for the completion date of certain lender required capital projects. In conjunction with the Loan modification, DiamondRock will pre-fund the capital projects into an escrow account and pay the lender a $150,000 modification fee. There were no other material modifications to the Loan. As a result of the Loan modification, DiamondRock's results for the quarter ended March 26, 2010 will reflect a reversal of the $3.1 million penalty interest accrued last year.
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