Red Lion Hotels Corporation announced today that it has closed on a $14 million loan from Wells Fargo Bank, National Association on Red Lion’s 181-room hotel in Bellevue, Washington. The loan provides for a five-year term and a variable spread over LIBOR based on certain financial ratios. The current pricing is 1.75% over LIBOR. Red Lion used part of the proceeds of the loan to pay off its existing higher-rate loan in the approximate amount of $8.2 million and will use the remainder for general corporate purposes.
Dan Adams, Vice President of Wells Fargo Bank, National Association, said, “Red Lion Hotels Corporation is a valuable customer of ours. Red Lion’s financial performance and solid management along with the clear value of Red Lion’s Bellevue hotel justified the expansion of our excellent existing relationship with the company.”