La Quinta Announces Determination of Purchase Price in Its Cash Tender Offers for Outstanding Debt Securities
January 23 2006 - 6:05PM
PR Newswire (US)
DALLAS, Jan. 23 /PRNewswire-FirstCall/ -- La Quinta Corporation
(NYSE:LQI) and its controlled subsidiary La Quinta Properties, Inc.
announced today the determination of the consideration to be paid
in the previously announced cash tender offers and consent
solicitations for any and all of the 8 7/8% Senior Notes due March
15, 2011, 7% Senior Notes due August 15, 2012, 7% Notes due August
15, 2007, 7.27% Medium Term Notes due February 26, 2007 and 7.33%
Medium Term Notes due April 1, 2008 of La Quinta Properties, Inc.
(collectively, the "Notes"). The total consideration for the Notes,
which will be payable in respect of Notes accepted for payment that
were validly tendered with consents delivered and not withdrawn on
or prior to 5:00 p.m., New York City time, on January 6, 2006, will
be an amount equal to the total consideration specified in the
table below for each $1,000 principal amount of Notes. The purchase
price for the Notes specified in the table below, which will be
paid in respect of Notes accepted for payment that are validly
tendered subsequent to 5:00 p.m., New York City time, on January 6,
2006 but on or prior to 8:00 a.m., New York City time, on January
25, 2006, will be an amount equal to the total consideration minus
the consent payment of $30 per $1,000 principal amount. In addition
to the total consideration or purchase price payable in respect of
Notes purchased in the tender offers, La Quinta Properties, Inc.
will pay accrued and unpaid interest to but not including the
payment date for Notes purchased in the tender offers. Tender Title
of Reference Applicable Offer Total Consent Purchase Notes Yield
Spread Yield Consideration Payment Price 8 7/8% Senior Notes due
March 15, 2011 4.453% 50 bps 4.953% $1,084.78 $30 $1,054.78 7%
Senior Notes due August 15, 2012 4.321% 50 bps 4.821% $1,082.75 $30
$1,052.75 7% Notes due August 15, 2007 4.380% 50 bps 4.880%
$1,031.35 $30 $1,001.35 7.27% Medium Term Notes due February 26,
2007 4.450% 50 bps 4.950% $1,024.29 $30 $994.29 7.33% Medium Term
Notes due April 1, 2008 4.353% 50 bps 4.853% $1,050.81 $30
$1,020.81 The total consideration and the purchase price for the
Notes were determined as of 2:00 p.m., New York City time, today by
reference to a fixed spread of 50 basis points above the yield of
the applicable reference security. The tender offers will expire at
8:00 a.m., New York City time, on January 25, 2006, unless extended
or earlier terminated. The tender offers and concurrent consent
solicitations are being conducted in connection with the previously
announced agreement of La Quinta Corporation and La Quinta
Properties, Inc. to merge with affiliates of The Blackstone Group.
The consummation of the tender offers is conditioned upon the
successful completion of the mergers, among other conditions. This
press release is neither an offer to purchase nor a solicitation of
an offer to sell any securities. The tender offers are being made
only pursuant to the Offer to Purchase and Consent Solicitation
Statement dated December 20, 2005 and the related Consent and
Letter of Transmittal, as the same may be amended from time to
time. Persons with questions regarding the tender offers or the
consent solicitations should contact Bear, Stearns & Co. Inc.
and Morgan Stanley & Co. Incorporated who are the Dealer
Managers for the tender offers and Solicitation Agents for the
consent solicitations at (877) 696-BEAR (toll-free) and (800)
624-1808 (toll-free), respectively. The documents relating to the
tender offers and consent solicitations may be obtained from D.F.
King & Co., Inc., the Information Agent, which can be contacted
at (212) 269-5550 (for banks and brokers only) or (888) 644-5854
(for all others toll-free). This release is for informational
purposes only and is neither an offer to purchase nor a
solicitation of an offer to sell the Notes. The offer to buy the
Notes is only being made pursuant to the tender offer and consent
solicitation documents, including the Offer to Purchase and Consent
Solicitation Statement and the related Consent and Letter of
Transmittal. The tender offers and consent solicitations are not
being made to holders of Notes in any jurisdiction in which the
making or acceptance thereof would not be in compliance with the
securities, blue sky or other laws of such jurisdiction. In any
jurisdiction in which the tender offers or consent solicitations
are required to be made by a licensed broker or dealer, they shall
be deemed to be made by Bear, Stearns & Co. Inc. or Morgan
Stanley & Co. Incorporated on behalf of La Quinta Properties,
Inc. About La Quinta La Quinta Corporation and its controlled
subsidiary, La Quinta Properties, Inc. is one of the largest
owner/operators of limited-service hotels in the United States.
Based in Dallas, Texas, the Company owns and operates 360 hotels
and franchises more than 240 hotels in 39 states under the La
Quinta Inns(R), La Quinta Inn & Suites(R), Baymont Inn &
Suites(R), Woodfield Suites(R) and Budgetel(R) brands. For more
information about La Quinta Corporation, please visit
http://www.lq.com/ . FCMN Contact: tom.ward@laquinta.com
DATASOURCE: La Quinta Corporation CONTACT: Tom Ward, Investor
Relations, +1-214-492-6689, or Teresa Ferguson, Public Relations,
+1-214-492-6937, both of La Quinta Corporation Web site:
http://www.lq.com/
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