LodgeNet to Get $60 Mln Infusion from Colony Capital Syndicate
LodgeNet Interactive Corp. said Monday that a syndicate formed by a Colony Capital affiliate has agreed to provide $60 million of new capital via a recap. The deal will be implemented through an expedited Chapter 11 bankruptcy proceeding. Once the process concludes, the Colony syndicate will have a controlling stake in LodgeNet, which provides interactive media and connectivity services to hospitality and healthcare businesses. The Colony syndicate will invest $60 million in exchange for all of the new shares of common stock of LodgeNet Interactive. Unsecured creditors of LodgeNet will be paid in full for any pre-petition claims at the conclusion of the Chapter 11 process. The deal also calls for LodgeNet and DIRECTV to operate as strategic partners within the hospitality and healthcare markets. Miller Buckfire, a unit of Stifel Financial, FTI Consulting and Moorgate Securities served as financial advisors to LodgeNet. Guggenheim Securities acted as financial advisor to Colony.
