SPOKANE, WA, June 13, 2006 Red Lion Hotels Corporation ("Red Lion") (NYSE: RLH) today announced that the underwriters of the company's recent common stock offering have exercised in full their over-allotment option and purchased an additional 845,302 shares of the company's common stock at the public offering price of $11.00 per share. The over-allotment option closed today and resulted in gross proceeds to the company of $9.3 million before expenses and the underwriting discount. With the closing of the over-allotment, the company's gross proceeds from its public offering total $64.3 million.
JMP Securities LLC was the sole book running manager of the offering, with Thomas Weisel Partners LLC, Robert W. Baird & Co. and Calyon Securities (USA) Inc. acting as co-managers.
Copies of the final prospectus relating to the offering may be obtained at www.sec.gov or by contacting JMP Securities LLC, 600 Montgomery Street, Suite 1100, San Francisco, CA 94111, telephone (415) 835-8900.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state or jurisdiction which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction.
About Red Lion Hotels Corporation
Red Lion Hotels Corporation is a hospitality and leisure company primarily engaged in the ownership, operation and franchising of midscale and upscale, full service hotels under its Red Lion® brand. As of March 31, 2006 the RLH hotel network was comprised of 61 hotels located in 10 states and one Canadian province, with 10,687 rooms and 521,537 square feet of meeting space. The company also operates an entertainment and event ticket distribution business. The company is headquartered in Spokane, Washington. For more information, please visit our website at www.redlion.com.
This press release contains forward-looking statements within the meaning of federal securities law. 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 the matters discussed in the company's quarterly report on Form 10-Q for the quarter ended March 31, 2006 and in other documents filed by the company with the Securities and Exchange Commission.
Red Lion Hotels Corporation
Julie Langenheim, Investor Relations Manager
CCG Investor Relations
Crocker Coulson, President
(310) 231-8600 ext 103