La Quinta to redeem all series A preferreds

By Jennifer Chiou

New York, Jan. 13 - La Quinta Corp. and its controlled subsidiary, La Quinta Properties, Inc., said they plan to redeem all of La Quinta Properties' 9% series A cumulative preferred stock as well as the corresponding depositary shares.

Each depositary share represents one-tenth of one series A preferred share.

The Dallas hotel owner and operator will redeem the shares on Feb. 12.

La Quinta Properties will redeem the preferreds at $252.75 per share, including $2.75 in accrued dividends. The company will redeem the depositary shares at $25.00 per share plus $0.275 in accrued dividends.

As previously announced on Nov. 9, La Quinta received acquisition financing for its leveraged buyout by The Blackstone Group. Under the merger agreement, an affiliate of The Blackstone Group will merge with La Quinta Properties.

If the merger occurs prior to the redemption date, La Quinta Properties said it expects the depositary shares to be delisted from the New York Stock Exchange and deregistered after the effective time of the merger.

American Stock Transfer & Trust Co. is the depositary and redemption agent (877 248-6417 or call collect 718 921-8317).

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