Dallas (January 23, 2006) La Quinta Corporation (NYSE: LQI) and its controlled subsidiary La Quinta Properties, Inc. announced today the determination of the consideration to be paid in the previously announced cash tender offers and consent solicitations for any and all of the 8⅞% Senior Notes due March 15, 2011, 7% Senior Notes due August 15, 2012, 7% Notes due August 15, 2007, 7.27% Medium Term Notes due February 26, 2007 and 7.33% Medium Term Notes due April 1, 2008 of La Quinta Properties, Inc. (collectively, the "Notes").
The total consideration for the Notes, which will be payable in respect of Notes accepted for payment that were validly tendered with consents delivered and not withdrawn on or prior to 5:00 p.m., New York City time, on January 6, 2006, will be an amount equal to the total consideration specified in the table below for each $1,000 principal amount of Notes. The purchase price for the Notes specified in the table below, which will be paid in respect of Notes accepted for payment that are validly tendered subsequent to 5:00 p.m., New York City time, on January 6, 2006 but on or prior to 8:00 a.m., New York City time, on January 25, 2006, will be an amount equal to the total consideration minus the consent payment of $30 per $1,000 principal amount. In addition to the total consideration or purchase price payable in respect of Notes purchased in the tender offers, La Quinta Properties, Inc. will pay accrued and unpaid interest to but not including the payment date for Notes purchased in the tender offers.
The total consideration and the purchase price for the Notes were determined as of 2:00 p.m., New York City time, today by reference to a fixed spread of 50 basis points above the yield of the applicable reference security.
The tender offers will expire at 8:00 a.m., New York City time, on January 25, 2006, unless extended or earlier terminated. The tender offers and concurrent consent solicitations are being conducted in connection with the previously announced agreement of La Quinta Corporation and La Quinta Properties, Inc. to merge with affiliates of The Blackstone Group. The consummation of the tender offers is conditioned upon the successful completion of the mergers, among other conditions.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any securities. The tender offers are being made only pursuant to the Offer to Purchase and Consent Solicitation Statement dated December 20, 2005 and the related Consent and Letter of Transmittal, as the same may be amended from time to time. Persons with questions regarding the tender offers or the consent solicitations should contact Bear, Stearns & Co. Inc. and Morgan Stanley & Co. Incorporated who are the Dealer Managers for the tender offers and Solicitation Agents for the consent solicitations at (877) 696-BEAR (toll-free) and (800) 624-1808 (toll-free), respectively. The documents relating to the tender offers and consent solicitations may be obtained from D.F. King & Co., Inc., the Information Agent, which can be contacted at (212) 269-5550 (for banks and brokers only) or (888) 644-5854 (for all others toll-free).
This release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The offer to buy the Notes is only being made pursuant to the tender offer and consent solicitation documents, including the Offer to Purchase and Consent Solicitation Statement and the related Consent and Letter of Transmittal. The tender offers and consent solicitations are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the tender offers or consent solicitations are required to be made by a licensed broker or dealer, they shall be deemed to be made by Bear, Stearns & Co. Inc. or Morgan Stanley & Co. Incorporated on behalf of La Quinta Properties, Inc.
About La Quinta
La Quinta Corporation and its controlled subsidiary, La Quinta Properties, Inc. (NYSE: LQI) is one of the largest owner/operators of limited-service hotels in the United States. Based in Dallas, Texas, the Company owns and operates 360 hotels and franchises more than 240 hotels in 39 states under the La Quinta Inns®, La Quinta Inn & Suites®, Baymont Inn & Suites®, Woodfield Suites® and Budgetel® brands. For more information about La Quinta Corporation, please visit www.LQ.com.