New Issue: La Quinta eight-year notes upsized to $325 million, yield 8 7/8%

By Paul A. Harris

St. Louis, March 14 - La Quinta Properties, Inc. upsized to $325 million from $250 million its offering of senior notes due March 15, 2011 (Ba3/BB-/BB-) and priced them Friday at par to yield 8 7/8%, according to a syndicate source.

Price talk was for a yield of 8¾%-9%.

Lehman Brothers was the bookrunner. Co-managers were CIBC World Markets, Fleet Securities and JP Morgan.

Proceeds from the Rule 144A deal will be used to help fund Dallas-based lodging company's tender offer for its existing notes and to repay bank debt.

Issuer:	La Quinta Properties, Inc.
Amount:	$325 million (from $250 million)
Maturity:	March 15, 2011
Security description:	Senior notes
Bookrunner:	Lehman Brothers
Co-managers:	CIBC World Markets, Fleet Securities, JP Morgan
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Call features:	Callable on March 15, 2007 at 104.438, then at 102.219, declining par on March 15, 2009 and thereafter
Equity clawback:	Until March 15, 2006 for 35% at 108.875
Settlement date:	March 19, 2003
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
	Fitch: BB-
Rule 144A Cusip:	50419QAC6
Price talk:	8¾%-9%

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