Four Seasons Hotels $200 million quick-sale convertible talked at 1.625-2.125%, up 28-32%

By Ronda Fears

Nashville, June 14 - Four Seasons Hotels Inc. was booking orders Monday for a $200 million offering of 20-year convertible notes with talk of a 1.625% to 2.125% coupon and 28% to 32% initial conversion premium. The issue is convertible into limited voting shares.

Morgan Stanley & Co. Inc. is bookrunner of the deal, which was pricing after the market close Monday.

The issue will be non-callable for five years with puts in years five, 10 and 15. There is a 130% contingent conversion trigger.

In addition, there is a designated event put, which includes a "fundamental change" such as a change of control in the company, payable at par in limited voting shares, cash or a combination of stock and cash. Also, there is a premium make-whole provision in the event of a "fundamental change."

Toronto-based Four Seasons has a 0% convertible due 2029 (BB+/Ba1) outstanding - a $650 million face amount issue that is callable and putable in September 2004 at 32.873. It was closed Thursday at 34 bid, 34.5 offered with Four Seasons shares at $58.20.

In pre-market action Monday, Four Seasons shares were down $20.22, or 34.74%, to $37.98.

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