April 24, 2017 / 10:54 AM / in 7 months

BRIEF-RLJ Lodging Trust and Felcor Lodging Trust to merge

April 24 (Reuters) - Rlj Lodging Trust

* RLJ Lodging Trust and Felcor Lodging Trust to merge creating $7 billion leading lodging REIT

* Post-Merger, RLJ is expected to have a pro forma equity market capitalization of approximately $4.2 billion

* RLJ Lodging - each share of Felcor stock will be converted into 0.362 shares of newly issued common shares of RLJ common stock in a taxable merger

* Strategic merger was unanimously approved by boards of both companies

* RLJ Lodging Trust - Felcor operating units will be exchanged for ltd partnership units in RLJ’s operating partnership at similar exchange ratio of 0.362

* RLJ Lodging Trust says combined company will continue to be led by Robert L. Johnson as executive chairman

* Merger will be immediately accretive to RLJ’s REVPAR with pro forma 2016 REVPAR increasing 5.4% to $137

* RLJ Lodging Trust - once merger is consummated, company will retain RLJ Lodging Trust name and will trade under ticker symbol “RLJ”

* RLJ Lodging Trust says co’s shareholders expected to own about 71 percent of combined co equity; Felcor’s shareholders expected to own remaining 29 percent

* RLJ Lodging Trust says combined company will continue to be led by Ross H. Bierkan as president and chief executive officer

* Following closing , new company expects to pay a quarterly dividend of $0.33 per common share of beneficial interest

* RLJ Lodging Trust - expected cash G&A expense savings of about $12 million and about $10 million of potential savings from stock-based compensation expense post deal

* RLJ Lodging Trust says upon completion, company’s headquarters will remain in Bethesda, Maryland

* Felcor will merge with and into a wholly-owned subsidiary of RLJ in an all-stock transaction Source text for Eikon: Further company coverage:

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