Luxury Hospitality Daily News

< Previous news Next news >

Morgans Hotel Group Co. Announces Pricing of Initial Public Offering

Morgans Hotel Group Co. Announces Pricing of Initial Public Offering

Category: Worldwide -
This is a press release selected by our editorial committee and published online for free on 2006-02-15


Morgans Hotel Group Co. (NASDAQ: MHGC), a fully integrated hospitality company that operates, owns, acquires and redevelops boutique hotels in gateway cities and select resort markets in the United States and Europe, announced today the initial public offering of 18,000,000 shares of its common stock. The offering was priced at $20.00 per share.

The Company has agreed to sell 15,000,000 shares of its common stock and selling stockholders have agreed to sell 3,000,000 shares of their common stock. At the closing of the initial public offering, which is scheduled for February 17, 2006, the Company expects to receive net proceeds of approximately $275.0 million. The Company will not receive any proceeds from shares sold by selling stockholders. Morgans Hotel Group Co. intends to use the net proceeds of the offering to repay outstanding debt and preferred equity interests, to finance a portion of the acquisition of James Hotel Scottsdale and for general corporate purposes, including hotel renovations.

Morgans Hotel Group Co. has also granted to the underwriters an option to purchase up to an additional 2,700,000 shares of common stock to cover over-allotments, if any.

The offering is being led by Morgan Stanley & Co. Incorporated and Merrill Lynch & Co., acting as joint book-running managers, and Citigroup, Banc of America Securities LLC, Thomas Weisel Partners LLC, Jefferies & Company and JMP Securities, acting as co-managers.



You will also like to read...







< Previous news Next news >




Join us on Facebook Follow us on LinkedIn Follow us on Instragram Follow us on Youtube Rss news feed



Questions

Hello and welcome to Journal des Palaces

You are a communication or the PR manager?
Click here

You are an applicant?
Check out our questions and answers here!

You are a recruiter?
Check out our questions and answers here!