FelCor LP's Consolidating Financial Information

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]

FelCor LP's Consolidating Financial Information

Certain of FelCor LP's 100% owned subsidiaries (FCH/PSH, L.P.; FelCor/CMB Buckhead Hotel, L.L.C.; FelCor/CMB Marlborough Hotel, L.L.C.; FelCor/CMB Orsouth Holdings, L.P.; FelCor/CMB SSF Holdings, L.P.; FelCor/CSS Holdings, L.P.; FelCor Dallas Love Field Owner, L.L.C.; FelCor Milpitas Owner, L.L.C.; FelCor TRS Borrower 4, L.L.C.; FelCor Hotel Asset Company, L.L.C.; FelCor St. Pete (SPE), L.L.C.; FelCor Esmeralda (SPE), L.L.C.; FelCor S-4 Hotels (SPE), L.L.C.; Madison 237 Hotel, L.L.C.; Myrtle Beach Owner, L.L.C.; and Royalton 44 Hotel, L.L.C., collectively the “Subsidiary Guarantors”), together with Rangers, guaranty, fully and unconditionally, except where subject to customary release provisions as described below, and jointly and severally, our senior notes debt.

The guaranties by the Subsidiary Guarantors may be automatically and unconditionally released upon (i) the sale or other disposition of all of the capital stock of the Subsidiary Guarantor or the sale or disposition of all or substantially all of the assets of the Subsidiary Guarantor, if, in each case, as a result of such sale or disposition, such Subsidiary Guarantor ceases to be a subsidiary of FelCor LP, (ii) the consolidation or merger of any such Subsidiary Guarantor with any person other than FelCor LP, or a subsidiary of FelCor LP, if, as a result of such consolidation or merger, such Subsidiary Guarantor ceases to be a subsidiary of the Operating Partnership, (iii) a legal defeasance or covenant defeasance of the indenture, (iv) the unconditional and complete release of such Subsidiary Guarantor in accordance with the modification and waiver provisions of the indenture, or (v) the designation of a restricted subsidiary that is a Subsidiary Guarantor as an unrestricted subsidiary under and in compliance with the indenture.

The following tables present the consolidating financial information for the Subsidiary Guarantors:

FelCor Lodging Limited Partnership

Condensed Consolidating Balance Sheet

September 30, 2019

(in thousands)



	FelCor LP		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Equity investment in consolidated entities	$	1,731,751	$	—	$	—	$	(1,731,751	)	$	—
Investment in hotel properties, net	—		565,306		1,378,540		—			1,943,846
Investment in unconsolidated joint ventures	15,590		—		—		—			15,590
Cash and cash equivalents	1,533		—		11,162		—			12,695
Restricted cash reserves	446		—		5,610		—			6,056
Related party rent receivable	—		26,032		45,348		—			71,380
Lease right-of-use assets	4,556		67,525		9,633		—			81,714
Prepaid expense and other assets	2,040		1,126		1,760		—			4,926
Total assets	$	1,755,916	$	659,989	$	1,452,053	$	(1,731,751	)	$	2,136,207

Debt, net	$	501,778	$	24,694	$	222,014	$	(32,709	)	$	715,777
Related party debt	—		—		85,000		—			85,000
Accounts payable and other liabilities	6,642		15,782		12,363		—			34,787
Related party lease termination fee payable	—		344		368		—			712
Lease liabilities	4,760		25,883		17,944		—			48,587
Accrued interest	9,588		—		—		—			9,588
Related party accrued interest	—		—		190		—			190
Total liabilities	522,768		66,703		337,879		(32,709		)	894,641

Partnership interests	1,233,148		593,286		1,105,756		(1,699,042		)	1,233,148
Total partners' capital, excluding noncontrolling interest	1,233,148		593,286		1,105,756		(1,699,042		)	1,233,148
Noncontrolling interest in consolidated joint ventures	—		—		8,418		—			8,418
Total partners’ capital	1,233,148		593,286		1,114,174		(1,699,042		)	1,241,566
Total liabilities and partners’ capital	$	1,755,916	$	659,989	$	1,452,053	$	(1,731,751	)	$	2,136,207

FelCor Lodging Limited Partnership

Condensed Consolidating Balance Sheet

December 31, 2018

(in thousands)



	FelCor LP		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Equity investment in consolidated entities	$	1,913,418	$	—	$	—	$	(1,913,418	)	$	—
Investment in hotel properties, net	—		656,570		1,466,853		—			2,123,423
Investment in unconsolidated joint ventures	15,716		—		—		—			15,716
Cash and cash equivalents	10,778		—		10,573		—			21,351
Restricted cash reserves	441		—		2,770		—			3,211
Related party rent receivable	—		3,666		12,835		—			16,501
Intangible assets, net	—		46,260		—		—			46,260
Prepaid expense and other assets	1,819		1,297		3,436		—			6,552
Related party prepaid interest	—		—		180		—			180
Total assets	$	1,942,172	$	707,793	$	1,496,647	$	(1,913,418	)	$	2,233,194

Debt, net	$	505,322	$	—	$	154,015	$	(32,709	)	$	626,628
Related party debt	—		—		85,000		—			85,000
Accounts payable and other liabilities	9,288		14,376		19,725		—			43,389
Accrued interest	2,463		—		—		—			2,463
Distributions payable	—		—		126		—			126
Total liabilities	517,073		14,376		258,866		(32,709		)	757,606

Partnership interests	1,425,099		693,417		1,187,292		(1,880,709		)	1,425,099
Total partners' capital, excluding noncontrolling interest	1,425,099		693,417		1,187,292		(1,880,709		)	1,425,099
Noncontrolling interest in consolidated joint ventures	—		—		6,059		—			6,059
Preferred capital in a consolidated joint venture	—		—		44,430		—			44,430
Total partners’ capital	1,425,099		693,417		1,237,781		(1,880,709		)	1,475,588
Total liabilities and partners’ capital	$	1,942,172	$	707,793	$	1,496,647	$	(1,913,418	)	$	2,233,194

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Income

For the Three Months Ended September 30, 2019

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Related party lease revenue	$	—		$	18,374		$	28,018		$	—		$	46,392
Total revenues	—			18,374			28,018			—			46,392

Expenses
Depreciation and amortization	138			6,507			11,051			—			17,696
Property tax, insurance and other	26			4,783			5,518			—			10,327
General and administrative	181			84			13			—			278
Transaction costs	74			—			31			—			105
Total operating expenses	419			11,374			16,613			—			28,406
Other income	—			—			8			—			8
Interest income	205			—			70			(196		)	79
Interest expense	(5,954		)	(245		)	(2,198		)	196			(8,201		)
Related party interest expense	—			—			(1,138		)	—			(1,138		)
Loss on sale of hotel properties, net	—			(29		)	(62		)	—			(91		)
Income before equity in income from unconsolidated joint ventures	(6,168		)	6,726			8,085			—			8,643
Equity in income from consolidated entities	14,729			—			—			(14,729		)	—
Equity in income from unconsolidated joint ventures	30			—			—			—			30
Net income and comprehensive income	8,591			6,726			8,085			(14,729		)	8,673
Noncontrolling interest in consolidated joint ventures	—			—			(82		)	—			(82		)
Net income and comprehensive income attributable to FelCor LP	$	8,591		$	6,726		$	8,003		$	(14,729	)	$	8,591

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Income

For the Three Months Ended September 30, 2018

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Related party lease revenue	$	—		$	27,360		$	30,451		$	—		$	57,811
Total revenues	—			27,360			30,451			—			57,811

Expenses
Depreciation and amortization	115			8,017			11,160			—			19,292
Property tax, insurance and other	(4		)	7,598			6,353			—			13,947
General and administrative	(491		)	29			(102		)	—			(564		)
Transaction costs	(4		)	261			(63		)	—			194
Total operating expenses	(384		)	15,905			17,348			—			32,869
Other income	1			—			—			—			1
Interest income	285			—			15			(230		)	70
Interest expense	(5,955		)	—			(2,742		)	230			(8,467		)
Gain on sale of hotel properties, net	—			(9,971		)	34,225			—			24,254
Loss on extinguishment of indebtedness	(4		)	—			(1,652		)	—			(1,656		)
Income before equity in income from unconsolidated joint ventures	(5,289		)	1,484			42,949			—			39,144
Equity in income from consolidated entities	44,007			—			—			(44,007		)	—
Equity in income from unconsolidated joint ventures	218			—			—			—			218
Net income and comprehensive income	38,936			1,484			42,949			(44,007		)	39,362
Noncontrolling interest in consolidated joint ventures	—			—			(52		)	—			(52		)
Preferred distributions - consolidated joint venture	—			—			(374		)	—			(374		)
Net income and comprehensive income attributable to FelCor LP	$	38,936		$	1,484		$	42,523		$	(44,007	)	$	38,936

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2019

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Related party lease revenue	$	—		$	59,320		$	93,214		$	—		$	152,534
Total revenues	—			59,320			93,214			—			152,534

Expenses
Depreciation and amortization	373			20,090			33,821			—			54,284
Property tax, insurance and other	95			14,779			16,542			—			31,416
General and administrative	755			171			35			—			961
Transaction costs	138			—			77			—			215
Total operating expenses	1,361			35,040			50,475			—			86,876
Other income	39			10			10			—			59
Interest income	646			—			178			(585		)	239
Interest expense	(17,842		)	(511		)	(5,938		)	585			(23,706		)
Related party interest expense	—			—			(3,475		)	—			(3,475		)
Loss on sale of hotel properties, net	—			(10,661		)	(10,813		)	—			(21,474		)
Income before equity in income from unconsolidated joint ventures	(18,518		)	13,118			22,701			—			17,301
Equity in income from consolidated entities	34,402			—			—			(34,402		)	—
Equity in income from unconsolidated joint ventures	565			—			—			—			565
Net income and comprehensive income	16,449			13,118			22,701			(34,402		)	17,866
Noncontrolling interest in consolidated joint ventures	—			—			(78		)	—			(78		)
Preferred distributions - consolidated joint venture	—			—			(186		)	—			(186		)
Redemption of preferred capital - consolidated joint venture	—			—			(1,153		)	—			(1,153		)
Net income and comprehensive income attributable to FelCor LP	$	16,449		$	13,118		$	21,284		$	(34,402	)	$	16,449

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Income

For the Nine Months Ended September 30, 2018

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Related party lease revenue	$	—		$	70,046		$	101,965		$	—		$	172,011
Total revenues	—			70,046			101,965			—			172,011

Expenses
Depreciation and amortization	343			25,129			35,024			—			60,496
Property tax, insurance and other	99			22,310			20,425			—			42,834
General and administrative	482			84			29			—			595
Transaction costs	1,979			361			29			—			2,369
Total operating expenses	2,903			47,884			55,507			—			106,294
Other income	10			—			101			—			111
Interest income	524			—			15			(386		)	153
Interest expense	(22,485		)	—			(8,122		)	386			(30,221		)
Gain on sale of hotel properties, net	—			(19,386		)	34,316			—			14,930
Gain on extinguishment of indebtedness, net	12,932			—			(1,652		)	—			11,280
Income before equity in income from unconsolidated joint ventures	(11,922		)	2,776			71,116			—			61,970
Equity in income from consolidated entities	72,765			—			—			(72,765		)	—
Equity in income from unconsolidated joint ventures	945			—			—			—			945
Net income and comprehensive income	61,788			2,776			71,116			(72,765		)	62,915
Noncontrolling interest in consolidated joint ventures	—			—			(18		)	—			(18		)
Preferred distributions - consolidated joint venture	—			—			(1,109		)	—			(1,109		)
Net income and comprehensive income attributable to FelCor LP	$	61,788		$	2,776		$	69,989		$	(72,765	)	$	61,788

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 30, 2019

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(16,141	)	$	26,326		$	41,040		$	—		$	51,225
Investing activities:
Proceeds from the sale of hotel properties, net	—			82,287			62,872			—			145,159
Improvements and additions to hotel properties	(159		)	(20,023		)	(22,481		)	—			(42,663		)
Contributions to unconsolidated joint ventures	(603		)	—			—			—			(603		)
Intercompany financing	216,063			—			—			(216,063		)	—
Cash flows from investing activities	215,301			62,264			40,391			(216,063		)	101,893
Financing activities:
Proceeds from borrowings	—			25,000			71,000			—			96,000
Repayments of borrowings	—			—			(1,925		)	—			(1,925		)
Contributions from partners	135,941			—			—			—			135,941
Distributions to partners	(344,341		)	—			—			—			(344,341		)
Payments of deferred financing costs	—			(340		)	(650		)	—			(990		)
Preferred distributions - consolidated joint venture	—			—			(312		)	—			(312		)
Redemption of preferred capital - consolidated joint venture	—			—			(45,583		)	—			(45,583		)
Contributions from consolidated joint venture partners	—			—			2,281			—			2,281
Intercompany financing	—			(113,250		)	(102,813		)	216,063			—
Cash flows from financing activities	(208,400		)	(88,590		)	(78,002		)	216,063			(158,929		)
Net change in cash, cash equivalents, and restricted cash reserves	(9,240		)	—			3,429			—			(5,811		)
Cash, cash equivalents, and restricted cash reserves, beginning of year	11,219			—			13,343			—			24,562
Cash, cash equivalents, and restricted cash reserves, end of period	$	1,979		$	—		$	16,772		$	—		$	18,751

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 30, 2018

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(38,965	)	$	66,876		$	105,305		$	—		$	133,216
Investing activities:
Proceeds from the sale of hotel properties, net	—			151,466			282,895			—			434,361
Improvements and additions to hotel properties	(4		)	(21,751		)	(36,458		)	—			(58,213		)
Intercompany financing	515,209			—			—			(515,209		)	—
Cash flows from investing activities	515,205			129,715			246,437			(515,209		)	376,148
Financing activities:
Repayments of borrowings	(538,813		)	—			(30,220		)	—			(569,033		)
Contributions from partners	673,853			—			—			—			673,853
Distributions to partners	(610,132		)	—			—			—			(610,132		)
Payments of deferred financing costs	—			—			(10		)	—			(10		)
Preferred distributions - consolidated joint venture	—			—			(1,113		)	—			(1,113		)
Intercompany financing	—			(196,591		)	(318,618		)	515,209			—
Cash flows from financing activities	(475,092		)	(196,591		)	(349,961		)	515,209			(506,435		)
Net change in cash, cash equivalents, and restricted cash reserves	1,148			—			1,781			—			2,929
Cash, cash equivalents, and restricted cash reserves, beginning of year	9,637			—			8,394			—			18,031
Cash, cash equivalents, and restricted cash reserves, end of period	$	10,785		$	—		$	10,175		$	—		$	20,960

Rangers Sub I, LLC 10-Q