Four Seasons Hotel (NYSE:FS)
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Four Seasons Announces Sale of US$220 Million 1.875% Convertible
Senior Notes
TORONTO, June 15 /PRNewswire-FirstCall/ -- Four Seasons Hotels Inc. (TSX
Symbol "FSH"; NYSE Symbol "FS") today announced that it has entered into an
agreement with Morgan Stanley & Co. Incorporated on behalf of a group of
underwriters (including Morgan Stanley & Co. Incorporated, Goldman, Sachs &
Co., Deutsche Bank Securities Inc., RBC Capital Markets Corporation, Scotia
Capital (USA) Inc. and NBF Securities (USA) Corp.) to sell US$220 million
(principal amount) 1.875% convertible senior notes. The offering is expected to
close on or about June 18, 2004. Four Seasons has granted the underwriters an
option to purchase up to an additional US$30 million principal amount of the
notes over the next 30 days to cover any over-allotments.
The notes will bear interest at the rate of 1.875% per annum, payable
semi-annually in arrears, and will mature on July 30, 2024, unless earlier
redeemed or repurchased. The notes will be convertible into Limited Voting
Shares of Four Seasons at an initial conversion rate of 13.9581 shares per
US$1,000 principal amount (equal to a conversion price of approximately
US$71.64 per Limited Voting Share) in certain circumstances, including those in
which the Limited Voting Shares have traded for more than 130% of the
conversion price for a specified period, the notes have had a trading price of
less than 95% of the market price of the Limited Voting Shares into which they
may be converted for a specified period, the notes have been called for
redemption, or there has occurred a specified corporate transaction or a
fundamental change. Holders of the notes will have the right to require Four
Seasons to purchase the notes on July 30, 2009, July 30, 2014 and July 30,
2019, and in connection with certain designated events. Four Seasons will have
the right to redeem the notes for their principal amount plus any accrued and
unpaid interest beginning August 4, 2009.
Four Seasons intends to use the net proceeds from the sale of the notes for
general corporate purposes, including the making of investments in, or advances
in respect of or to owners of, properties with a view to obtaining new
management agreements or enhancing existing management agreements and the
repayment of outstanding indebtedness (which may include the redemption or
repurchase of our convertible notes due 2029 in appropriate circumstances).
The notes will be issued under Four Seasons' existing shelf prospectus and
registration statement. Offers and sales of the notes will be made only by the
related prospectus and prospectus supplement. A copy of the prospectus and the
preliminary prospectus supplement can be obtained from the Prospectus
Department of Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, New
York, 10036.
This press release shall not constitute an offer to sell or solicitation of an
offer to buy, nor shall there be any sale of these securities in any state in
the United States in which that offer, solicitation or sale would be unlawful
before the registration or qualification under the securities laws of that
state or in any province or territory of Canada.
With a history spanning four decades and a portfolio that extends worldwide,
Four Seasons Hotels and Resorts is the world's leading operator of luxury
hotels, currently managing 61 properties in 28 countries.
DATASOURCE: Four Seasons Hotels and Resorts
CONTACT: Douglas L. Ludwig, Chief Financial Officer and
Executive Vice President, (416) 441-4320; Barbara Henderson, Vice President
Taxation and Investor Relations, (416) 441-4329