BETHESDA, Md. & IRVING, Texas–(Hospitalitybusinessnews.com)–RLJ Lodging Trust and FelCor Lodging Trust Incorporated today announced that at special meetings held earlier today shareholders of RLJ approved the issuance of common shares of beneficial interest, par value $0.01 per share, of RLJ (the “RLJ Common Shares”) in connection with the Merger (as defined below) and stockholders of FelCor approved FelCor’s merger with and into a subsidiary of RLJ in a stock-for-stock transaction (the “Merger”) in connection with the previously announced Agreement and Plan of Merger, dated as of April 23, 2017, by and among RLJ, FelCor and the other entities party thereto.
“Today’s vote solidifies our position as the premier lodging REIT within the most profitable segment of the hotel market,” said Robert L. Johnson, Executive Chairman of RLJ. “We are very pleased with the overwhelming level of support that we received from both RLJ and FelCor shareholders. We look forward to closing this transaction at the end of the month and starting to unlock the strategic benefits of the merger.”
At the special meeting of RLJ shareholders, approximately 78% of the votes cast were voted in favor of the proposal related to the issuance of RLJ Common Shares in connection with the Merger.
At the special meeting of FelCor stockholders, approximately 81% of the outstanding shares of FelCor common stock were voted, with approximately 99% of the votes cast in favor of the Merger.
The Merger is expected to close on or about August 31, 2017, subject to the satisfaction or waiver of all closing conditions related to the transactions. Assuming completion of the Merger, FelCor stock is expected to be delisted from trading on the New York Stock Exchange (“NYSE”) after the close of trading on August 31, 2017. As a result of the Merger, among other things, each share of FelCor common stock will be converted into 0.362 RLJ Common Shares. RLJ Common Shares will continue to trade under the existing ticker symbol “RLJ” on the NYSE.