Exhibit 99.2
(AMEX:GTA)
AT THE COMPANY
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X. Xxxxxxx Xxxxx, XX
President and Chief Executive Officer
Xxxxx X. Xxxxxx
Chief Financial Officer
(000)000-0000
FOR IMMEDIATE RELEASE
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JULY 25, 2001
GOLF TRUST OF AMERICA AND ITS LENDERS
REACH AGREEMENT ON CREDIT FACILITY
CHARLESTON, SC, July 25, 2001 - Golf Trust of America, Inc. (AMEX:GTA)
announced today that it entered into an amended and restated Credit Agreement
with its senior bank lenders. Concurrently with the closing of the new Credit
Agreement, the lenders, GTA and certain of GTA's subsidiaries stipulated to
the dismissal of the litigation commenced by the lenders against GTA and
certain of its subsidiaries on May 22, 2001.
The new Credit Agreement consolidates the existing two senior credit
facilities into a single, secured term loan facility. The current principal
balance of the new credit facility is approximately $151 million, and matures
on June 30, 2002. GTA is required to make quarterly amortization payments in
the amount of $10 million and to use the net proceeds from the sale of its
golf course properties to pay-down the facility. Each of GTA's material
subsidiaries is a guarantor under the new Credit Agreement.
Golf Trust of America, Inc. is a real estate investment trust
involved in the ownership of high-quality golf courses in the United
States. The Company currently owns an interest in 32.5 (eighteen-hole
equivalent) golf courses.
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CERTAIN MATTERS DISCUSSED IN THIS PRESS RELEASE MAY CONSTITUTE
FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE FEDERAL SECURITIES LAWS.
ACTUAL RESULTS AND THE TIMING OF CERTAIN EVENTS COULD DIFFER MATERIALLY FROM
THOSE PROJECTED IN OR CONTEMPLATED BY THE FORWARD-LOOKING STATEMENTS DUE TO A
NUMBER OF FACTORS INCLUDING GENERAL ECONOMIC CONDITIONS, COMPETITION FOR GOLF
COURSE ACQUISITIONS, THE AVAILABILITY OF EQUITY AND DEBT FINANCING, INTEREST
RATES AND OTHER RISK FACTORS AS OUTLINED IN THE COMPANY'S SEC REPORTS.
