WestCoast Hospitality Corporation Announces Closing of $40 Million Trust Preferred Offering and Redemption of Preferred Stock
25 February 2004 - 8:15AM
PR Newswire (US)
WestCoast Hospitality Corporation Announces Closing of $40 Million
Trust Preferred Offering and Redemption of Preferred Stock SPOKANE,
Wash., Feb. 24 /PRNewswire-FirstCall/ -- WestCoast Hospitality
Corporation (the "Company") today announced the closing of the
public offering of $40 million of trust preferred securities by
WestCoast Hospitality Capital Trust, a Delaware statutory trust
sponsored by the Company. The securities, which have been listed on
the New York Stock Exchange under the symbolWEHPrA, are entitled to
cumulative cash distributions at a 9.5% annual rate and will mature
on February 24, 2044. The trust used the proceeds of the offering
to purchase from the Company $40 million of its junior subordinated
debentures with payment terms that mirror the distribution terms of
the trust preferred securities. After payment of underwriting
commissions and expenses of the trust preferred offering, the
Company realized net proceeds of approximately $38.4 million from
the debenture sale. The Company applied approximately $29.8 million
of these proceeds to redeem in full all outstanding shares of its
Series A and Series B preferred stock. The Company will use the
balance of the net proceeds for general corporate purposes.
Friedman, Billings, Ramsey & Co., Inc. is acting as the sole
book-running manager for the offering, and Wells Fargo Securities,
LLC is serving as co-manager. The Company has granted the
underwriters an option to purchase up to an additional $6 million
of trust preferred securities to cover over-allotments, which may
be exercised by the underwriters until March 19, 2004. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy any securities. No sale of, offer to sell or
solicitation of an offer to buy the trust preferred securities
shall be made in any state or jurisdiction in which such a sale,
offer or solicitation would be unlawful. WestCoast Hospitality
Corporation is a hospitality and leisure company primarily engaged
in the ownership, management, development and franchising of
mid-scale, full service hotels under its WestCoast(R) and Red
Lion(R) brands. In addition, through its entertainment division,
which includes its TicketsWest.com Inc. subsidiary, it engages in
event ticket distribution and promotes and presents a variety of
entertainment productions. G&B Real Estate Services, its real
estate division, engages in traditional real estate-related
services, including developing, managing and acting as a broker for
sales and leases of commercial and multi-unit residential
properties. This press release contains forward-looking statements
within the meaning of federal securities law, including statements
concerning plans, objectives, goals, strategies, projections of
future events or performance and underlying assumptions (many of
which are based, in turn upon further assumptions). The
forward-looking statements in this press release are inherently
subject to a variety of risks and uncertainties that could cause
actual results to differ materially from those expressed. Such
risks and uncertainties include, among others, economic cycles;
international conflicts; changes in future demand and supply for
hotel rooms; competitive conditions in the lodging industry;
relationships with franchisees and properties; impact of government
regulations; ability to obtain financing; changes in energy,
healthcare, insurance and other operating expenses; ability to sell
non-core assets; ability to locate lessees for rentalproperty and
managing and leasing properties owned by third parties; dependency
upon the ability and experience of executive officers and ability
to retain or replace such officers as well as other matters
discussed in the Company's annual report on Form 10-K for the 2002
fiscal year and in other documents filed by the Company with the
Securities and Exchange Commission. Contact: Stephen Barbieri
Title: VP, Communications Phone: +1-509-323-7211 Internet:
http://www.redlion.com/ http://www.westcoasthotels.com/
http://www.ticketswest.com/ http://www.g-b.com/ DATASOURCE:
WestCoast Hospitality Corporation CONTACT: Stephen Barbieri, VP,
Communications of WestCoast Hospitality Corporation,
+1-509-323-7211, or Web site: http://www.westcoasthotels.com/
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