Westcoast Hospitality (NYSE:WEH)
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WestCoast Hospitality Corporation Announces Closing of $40 Million Trust
Preferred Offering and Redemption of Preferred Stock
SPOKANE, Wash., Feb. 24 /PRNewswire-FirstCall/ -- WestCoast Hospitality
Corporation (the "Company") today announced the closing of the public offering
of $40 million of trust preferred securities by WestCoast Hospitality Capital
Trust, a Delaware statutory trust sponsored by the Company. The securities,
which have been listed on the New York Stock Exchange under the symbolWEHPrA,
are entitled to cumulative cash distributions at a 9.5% annual rate and will
mature on February 24, 2044. The trust used the proceeds of the offering to
purchase from the Company $40 million of its junior subordinated debentures with
payment terms that mirror the distribution terms of the trust preferred
securities. After payment of underwriting commissions and expenses of the trust
preferred offering, the Company realized net proceeds of approximately $38.4
million from the debenture sale. The Company applied approximately $29.8 million
of these proceeds to redeem in full all outstanding shares of its Series A and
Series B preferred stock. The Company will use the balance of the net proceeds
for general corporate purposes.
Friedman, Billings, Ramsey & Co., Inc. is acting as the sole book-running
manager for the offering, and Wells Fargo Securities, LLC is serving as
co-manager. The Company has granted the underwriters an option to purchase up to
an additional $6 million of trust preferred securities to cover over-allotments,
which may be exercised by the underwriters until March 19, 2004.
This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities. No sale of, offer to sell or solicitation of an
offer to buy the trust preferred securities shall be made in any state or
jurisdiction in which such a sale, offer or solicitation would be unlawful.
WestCoast Hospitality Corporation is a hospitality and leisure company primarily
engaged in the ownership, management, development and franchising of mid-scale,
full service hotels under its WestCoast(R) and Red Lion(R) brands. In addition,
through its entertainment division, which includes its TicketsWest.com Inc.
subsidiary, it engages in event ticket distribution and promotes and presents a
variety of entertainment productions. G&B Real Estate Services, its real estate
division, engages in traditional real estate-related services, including
developing, managing and acting as a broker for sales and leases of commercial
and multi-unit residential properties.
This press release contains forward-looking statements within the meaning of
federal securities law, including statements concerning plans, objectives,
goals, strategies, projections of future events or performance and underlying
assumptions (many of which are based, in turn upon further assumptions). The
forward-looking statements in this press release are inherently subject to a
variety of risks and uncertainties that could cause actual results to differ
materially from those expressed. Such risks and uncertainties include, among
others, economic cycles; international conflicts; changes in future demand and
supply for hotel rooms; competitive conditions in the lodging industry;
relationships with franchisees and properties; impact of government regulations;
ability to obtain financing; changes in energy, healthcare, insurance and other
operating expenses; ability to sell non-core assets; ability to locate lessees
for rentalproperty and managing and leasing properties owned by third parties;
dependency upon the ability and experience of executive officers and ability to
retain or replace such officers as well as other matters discussed in the
Company's annual report on Form 10-K for the 2002 fiscal year and in other
documents filed by the Company with the Securities and Exchange Commission.
Contact: Stephen Barbieri
Title: VP, Communications
Phone: +1-509-323-7211
Internet:
http://www.redlion.com/
http://www.westcoasthotels.com/
http://www.ticketswest.com/
http://www.g-b.com/
DATASOURCE: WestCoast Hospitality Corporation
CONTACT: Stephen Barbieri, VP, Communications of WestCoast Hospitality
Corporation, +1-509-323-7211, or
Web site: http://www.westcoasthotels.com/