Strategic Hotels & Resorts, Inc. Announces Results of Cash Tender Offer for the Aggregate Principal Amount of Its Subsidiary's Outstanding Exchangeable Notes
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Strategic Hotels & Resorts, Inc. Announces Results of Cash Tender Offer for the Aggregate Principal Amount of Its Subsidiary's Outstanding Exchangeable Notes
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Category: Worldwide - Industry economy -
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This is a press release selected by our editorial committee and published online for free on 2010-06-09
Strategic Hotels & Resorts, Inc. (the "Company") (NYSE:BEE) today announced the expiration and final results of its previously announced cash tender offer (the "Tender Offer") to purchase any and all of the outstanding 3.50% Exchangeable Senior Notes due 2012 (the "Exchangeable Notes") issued by the Company's subsidiary, Strategic Hotel Funding, L.L.C. ("SH Funding"), at a purchase price of $1,000 for each $1,000 principal amount of Exchangeable Notes purchased pursuant to the Tender Offer, plus accrued and unpaid interest to, but not including, June 10, 2010, the payment date for the Tender Offer. The Tender Offer expired at 12:00 midnight, New York City time, on June 7, 2010.
Pursuant to the Tender Offer, $180.0 million aggregate principal amount of the Exchangeable Notes, representing 100% of the aggregate principal amount of the outstanding Exchangeable Notes prior to the Tender Offer, have been validly tendered and not validly withdrawn. All Exchangeable Notes validly tendered and not validly withdrawn in the Tender Offer have been accepted for payment by the Company. Payment of the aggregate consideration of approximately $181.2 million, including accrued and unpaid interest, will be made on the Exchangeable Notes accepted for purchase in accordance with the terms of the Tender Offer. SH Funding intends to promptly cancel all of the Exchangeable Notes the Company has accepted for purchase. The Company is funding the purchase of the Exchangeable Notes with a portion of the proceeds from the recent underwritten public offering of 75.9 million shares of its common stock. J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc. served as joint dealer managers for the Tender Offer.
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