La Quinta Properties gets required consents in tenders for several series of notes

By Jennifer Chiou

New York, Jan. 9 - La Quinta Properties, Inc. said it received tenders from holders of a majority of its $325 million of 8 7/8% senior notes due March 15, 2011, $200 million of 7% senior notes due Aug. 15, 2012, $160 million of 7% notes due Aug. 15, 2007, $50 million of 7.27% medium-term notes due Feb. 26, 2007 and $50 million of 7.33% medium-term notes due April 1, 2008.

The Dallas hotel owner and operator obtained the required consents to amend the notes' indentures to eliminate all restrictive covenants and events of default as well as to modify covenants related to mergers. The company expects to execute a supplemental indenture.

The consent deadline was 5 p.m. ET on Jan. 6.

The offers are part of La Quinta Corp. and subsidiary La Quinta Properties' acquisition by affiliates of The Blackstone Group.

The offers expire at 8 a.m. ET on Jan. 25, unless extended.

For each $1,000 principal amount of 8 7/8% notes, La Quinta said it will pay the present value of $1,044.38, the redemption price of the notes on March 15, 2007, their first call date, discounted using the yield to maturity of the 3 3/8% Treasury due Feb. 28, 2007 and 50 basis points.

For each $1,000 principal amount of 7% notes due 2012, the company said it will pay the present value of $1,035.00 - the redemption price of the notes on Aug. 15, 2008, their first call date - discounted using the 3¼% Treasury due Aug. 15, 2008 and 50 bps.

For each $1,000 principal amount of 7% notes due 2007, the company said it will pay the present value of $1,000 - the redemption price at maturity - discounted using the 2¾% Treasury due Aug. 15, 2007 and 50 bps.

For each $1,000 principal amount of 7.27% notes, the company said it will pay the present value of $1,000 - the redemption price at maturity - discounted using the 2¼% Treasury due Feb. 15, 2007 and 50 bps.

For each $1,000 principal amount of 7% notes due 2007, the company said it will pay the present value of $1,000 - the redemption price at maturity - discounted using the 3% Treasury due Feb. 15, 2008 and 50 bps.

La Quinta will also pay accrued interest up to but excluding the payment date.

The payouts include a consent payment of $30.00 per $1,000 principal amount of notes for those who tendered their holdings before the consent deadline.

The offer, which was launched on Dec. 20, is conditioned upon the receipt of tenders from a majority of noteholders and the completion or pending completion of the merger.

Bear, Stearns & Co. Inc. (877 696-BEAR) and Morgan Stanley & Co. Inc. (800 624-1808) are the dealer managers and solicitation agents. D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 888 644-5854).

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