New Issue: Four Seasons upsized $220 million convertible yields 1.875%, up 30%

Nashville, June 15 - Four Seasons Hotels Inc. sold an upsized $220 million of 20-year convertible senior notes at par to yield 1.875% with a 30% initial conversion premium via sole bookrunner Morgan Stanley & Co. Inc.

The deal, boosted from $200 million, priced at the middle of guidance for a 1.625% to 2.125% coupon and 28% to 32% initial conversion premium. The issue is convertible into limited voting shares.

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

Vancouver-based Four Seasons plans to use proceeds to repay existing debt and for general corporate purposes.

Terms of the deal are:

Issuer:	Four Seasons Hotels Inc.
Issue:	Convertible senior notes
Bookrunners:	Morgan Stanley & Co. Inc.
Co-managers:	Goldman Sachs, Deutsche Bank, RBC Capital Markets, Scotia Capital, National Bank of Canada
Amount:	$220 million, up from $200 million
Greenshoe:	$30 million, unchanged
Maturity:	July 30, 2024
Coupon:	1.875%
Price:	Par
Yield:	1.875%
Conversion premium:	30%
Conversion price:	$71.64
Conversion ratio:	13.9581
Contingent conversion:	130%
Dividend protection:	Yes, full conversion ratio adjustment
Call:	Non-callable for 5 years
Put:	In years 5, 10 and 15
Price talk:	1.625-2.125%, up 28-32%
Pricing date:	June 14, after the close
Settlement date:	June 18
Distribution:	Registered

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