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Red Lions Hotels Corp | 9.5% Trust Preferred Securities (RLH.PRA)

Prospectus exerpt:  Our newly formed and wholly owned Delaware statutory trust, WestCoast Hospitality Capital Trust, which we refer to as the trust, is offering 1,600,000 9.5% trust preferred securities with a liquidation amount of $25 per trust preferred security.

Distributions on the trust preferred securities will accrue from and including the date of original issuance in the amount of $2.375 per trust preferred security per year, which is equivalent to 9.5% of the $25 liquidation amount per security. Distributions on the trust preferred securities will be payable quarterly in arrears, beginning March 31, 2004, and thereafter on each June 30, September 30, December 31 and March 31 unless the distributions are deferred as described herein.

The trust will invest the proceeds of the offering in junior subordinated debentures to be issued by us, which will be the trustís only assets. The debentures will have substantially the same payment terms as the trust preferred securities. The trust will be able to make distributions on the trust preferred securities only if we make corresponding payments on the debentures. We may defer payments of interest on the debentures on one or more occasions for up to 20 consecutive quarters, but not past their maturity date. If we defer payments of interest on the debentures, the trust will defer distributions on the trust preferred securities.

The debentures mature, and the trust preferred securities must be redeemed, on February 19, 2044. The trust may redeem some or all of the trust preferred securities at any time on or after February 19, 2009 by paying $25 per security, plus any accrued and unpaid distributions to, but excluding, the date of redemption. In addition, if we complete prior to February 19, 2007, an offering of common stock with gross proceeds to us of at least $50 million, the trust generally will be required to redeem 35% of the outstanding trust preferred securities. Further, if we undergo a change of control, holders of trust preferred securities will have the right to exchange their trust preferred securities for debentures and require us to repurchase those debentures.

The trust preferred securities will not be subject to any sinking fund and will not be convertible into any of our other securities. Except in certain limited circumstances, investors in the trust preferred securities will have no voting rights.

Full Prospectus PDF », RLH Page »

Redeemable?:Yes
Call Date:2/19/2009 (Now Trading Post Call Date)
Maturity Date:2/19/2044
Cumulative?:Yes
Shares Offered:1,600,000
Overallotment:240,000
Liquidation Preference:$25
Recent Market Price:$26.40
Premium to Liquidation Preference:
(More Preferreds Trading at a Premium »)
$1.40 (5.60%)
Annualized Dividend:2.375
Recent Ex-Date:3/26/2014
Current Yield:9.00%
Original Coupon:9.500%
Pay Period:Quarterly
Pay Dates:31-Mar, 30-Jun, 30-Sep, 31-Dec
Red Lion Hotels is a hospitality and leisure company primarily engaged in the ownership, operation and franchising of hotels under its proprietary brands, including Red Lion Hotels, Red Lion Inns & Suites and Leo hotel Collection (the Red Kion Brands). As of Dec 31 2013, Co.'s system of hotels was comprised of 55 hotels located in 10 states and one Canadian province, with 12,451 rooms and 703,822 square feet of meeting space. Co. is also engaged in entertainment operations, which includes the promotion and presentation of entertainment productions and ticketing services under the operations of WestCoast Entertainment and TicketsWest.

Preferred: RLH.PRA


Open the RLH Information Page »
Name:  Red Lions Hotels Corp
Website:  www.redlion.com
Sector:  Hotels, Lodging, Restaurants & Travel
Number of ETFs Holding RLH:  2 (see which ones)
Total Market Value Held by ETFs:  $272,670
Total Market Capitalization:  $114,000,000
% of Market Cap. Held by ETFs:  0.24%

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