Four Seasons Hotel (NYSE:FS)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Four Seasons Hotel Charts. Click Here for more Four Seasons Hotel Charts.](/p.php?pid=staticchart&s=NY%5EFS&p=8&t=15)
Four Seasons completes sale of US$250 million 1.875% convertible
senior notes
TORONTO, June 18 /PRNewswire-FirstCall/ -- Four Seasons Hotels Inc. (TSX
Symbol "FSH"; NYSE Symbol "FS") today announced the completion of the sale of
US$250 million (principal amount) 1.875% convertible senior notes to Morgan
Stanley & Co. Incorporated, Goldman, Sachs & Co., Deutsche Bank Securities
Inc., RBC Capital Markets Corporation, Scotia Capital (USA) Inc. and NBF
Securities (USA) Corp. The sale includes US$30 million of notes sold pursuant
to the exercise of the entire over-allotment option granted by Four Seasons to
the underwriters.
The notes will bear interest at the rate of 1.875% per annum (payable
semi-annually in arrears on January 30 and July 30 to holders of record on
January 15 and July 15, beginning January 30, 2005), 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 a specified corporate transaction or a fundamental
change has occurred. 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.
The notes have been assigned a rating of BBB- by Standard & Poor's Ratings
Services and a rating of Baa3 by Moody's Investors Service.
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).
Four Seasons also announced that it has established a US$100 million committed
bank credit facility with a Canadian chartered bank that, unless extended, will
expire in July 2005. This credit facility replaces existing credit facilities
that were to expire in July 2004.
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.
This news release contains "forward-looking statements" within the meaning of
federal securities laws. These statements, including the intended use of the
net proceeds from the sale of the notes, concern anticipated future events
results, circumstances, performance or expectations that are not historical
facts. These statements are not guarantees of future performance and are
subject to numerous risks and uncertainties that can affect our actual results
and could cause our actual results to differ materially from those expressed or
implied in any forward-looking statement made by us or on our behalf. These
statements are made as of the date of this news release and, except as required
by applicable law, we undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
This news release does not and shall not constitute an offer to sell or
solicitation of an offer to buy these securities.
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