New Issue: La Quinta sells $200 million eight-year notes to yield 7%

By Paul A. Harris

St. Louis, Aug. 5 - La Quinta Properties Inc. sold $200 million of eight-year senior notes (Ba3/BB-) at par on Thursday to yield 7%, according to a syndicate source.

Price talk was the 7% area.

Lehman Brothers and Banc of America Securities LLC were joint bookrunners for the Rule 144A/Regulation S issue. The co-managers were CIBC World Markets, Wells Fargo Capital, Credit Lyonnais and Morgan Stanley.

The Dallas-based real estate investment trust plans to use proceeds together with cash on hand to fund La Quinta's previously announced acquisition of The Marcus Corp.'s limited service lodging division.

Issuer:	La Quinta Properties Inc.
Amount:	$200 million
Maturity:	Aug. 15, 2012
Security description:	Senior notes
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	279 basis points
Call features:	Callable after Aug. 15, 2008 at 103.50, 101.75, par on or after Aug. 15, 2010
Equity clawback:	Until Aug. 15, 2007 for 35% at 107.0
Pricing date:	Aug. 5
Settlement date:	Aug. 19
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Price talk:	7% area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.