CBS 11 Header TXA 21 Header MeTV Header KRLD Header The Fan Header
NFL:  Cowboys Beat the Rams 34-31. Official Postgame on 105.3 The Fan | Listen | Stats | Local Picks |

Local

La Quinta Raises About $651 Million From IPO

View Comments
(credit: Matt McClain/Getty Images)

(credit: Matt McClain/Getty Images)

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

From Our CBS Music Web Sites

186152214 La Quinta Raises About $651 Million From IPOJIM GAFFIGAN, "My kids have never eaten Hot Pockets

181572784 8 La Quinta Raises About $651 Million From IPOFunny Faced Cheerleaders

 alt=Musicians Then And Now

455079896 La Quinta Raises About $651 Million From IPOWATCH: Iggy Azalea & JLO's Booty Battle

 alt=Remembering Jimi Hendrix 44 Years Later

cowb thumb La Quinta Raises About $651 Million From IPOCowboys Cheerleaders

IRVING (AP) - Hotel operator La Quinta Holdings Inc. has raised approximately $651 million from an initial public offering of its common stock.

The IPO of about 38.3 million shares is above the 37.2 million shares initially expected, according to a regulatory filing.

The offering priced at $17 per share, which was below the projected price range of $18 to $21 per share.

La Quinta is giving the underwriters a 30-day option to buy up to an additional 5.7 million shares.

The Irving, Texas, company expects about $618 million in net proceeds from the offering. That’s before the underwriters exercise their overallotment option and prior to taking out estimated offering expenses. But it’s after deducting underwriting discounts and commissions.

La Quinta anticipates using the offering’s net proceeds, coupled with available cash and net proceeds from a senior secured term loan facility of its subsidiary, to pay back outstanding debt. Any remaining proceeds will be used for general corporate purposes.

The company began in 1968 in San Antonio, Texas. It was a public company for more than 30 years, before being acquired by private equity firm The Blackstone Group LP in 2006.

La Quinta runs select-service hotels, which typically have fewer amenities than full-service hotels. It had 834 hotels at the end of 2013.

The shares are expected to start trading on the New York Stock Exchange on Wednesday under the “LQ” ticker symbol.

The offering is targeted to close on Monday.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Latest News:

Top Trending:

View Comments