UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 8, 2018
LA QUINTA HOLDINGS INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware | 001-36412 | 90-1032961 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
909 Hidden Ridge, Suite 600, Irving, Texas 75038
(Address of Principal Executive Offices) (Zip Code)
(214) 492-6600
(Registrants telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities
Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 | Other Events |
On May 8, 2018, La Quinta Holdings Inc. (La Quinta) issued a press release announcing that its Board of Directors (the Board) approved the distribution to La Quintas stockholders of all of the outstanding shares of common stock of CorePoint Lodging Inc. (CorePoint Lodging), which will become the holder of the owned real estate assets previously held by La Quinta. La Quinta stockholders of record will receive one share of CorePoint Lodging common stock for every two shares of La Quinta common stock held at the close of business on May 18, 2018, the record date for the distribution (or one share of CorePoint Lodging common stock for every one share of La Quinta common stock held as of the record date after giving effect to the 1-for-2 reverse stock split of La Quinta shares that will be effective immediately prior to the distribution of shares of CorePoint Lodging common stock). The spin-off transaction is expected to be completed on May 30, 2018, and CorePoint Lodging is expected to begin regular-way trading on the New York Stock Exchange under the ticker symbol CPLG on May 31, 2018. As previously announced, La Quinta will be merged with and into a subsidiary of Wyndham Worldwide Corporation immediately following the distribution of CorePoint Lodging common stock, subject to the satisfaction or waiver of conditions set forth in the previously filed merger agreement.
La Quinta also announced that the Board approved that the 1-for-2 reverse stock split of La Quinta shares will be effective immediately prior to the distribution of the CorePoint Lodging shares on May 30, 2018.
The press release announcing these matters is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this Current Report (including the exhibit attached hereto) contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties. A discussion of factors that may affect future results is contained in La Quintas Annual Report on Form 10-K for the year ended December 31, 2017, as such factors may be updated from time to time in La Quintas periodic filings with the Securities and Exchange Commission. La Quinta disclaims any obligation to update forward-looking statements, except as may be required by law.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit No. |
Description | |
99.1 | Press Release issued by La Quinta Holdings Inc., dated May 8, 2018 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LA QUINTA HOLDINGS INC. | ||
(Registrant) | ||
By: | /s/ Mark M. Chloupek | |
Name: Mark M. Chloupek | ||
Title: Executive Vice President, Secretary and General Counsel |
Date: May 8, 2018
Exhibit 99.1
FOR IMMEDIATE RELEASE
LA QUINTA BOARD OF DIRECTORS
APPROVES SPIN-OFF OF COREPOINT LODGING IN CONNECTION WITH TRANSACTION
WITH WYNDHAM WORLDWIDE
| Completion of spin-off of CorePoint Lodging, followed by closing of La Quinta merger with Wyndham Worldwide, expected to occur on May 30, 2018 |
| Record date for spin-off to be May 18, 2018; CorePoint Lodging expected to begin regular way trading on the New York Stock Exchange on May 31, 2018 |
| La Quinta stockholders to receive one share of CorePoint Lodging for every one share of La Quinta after giving effect to a 1-for-2 reverse stock split of La Quinta occurring immediately prior to the spin-off distribution |
IRVING, T.X. May 8, 2018La Quinta Holdings Inc. (La Quinta or the Company) (NYSE: LQ) today announced that its Board of Directors has formally approved the distribution to its stockholders of all of the outstanding shares of common stock of CorePoint Lodging Inc. (CorePoint Lodging), which will become the holder of the owned real estate assets previously held by La Quinta. Promptly following the distribution of CorePoint Lodging, La Quinta, which will then continue to hold its management and franchise businesses, expects to complete the previously announced merger (the Merger) with Wyndham Worldwide Corporation (Wyndham Worldwide), in accordance with and subject to the terms of the Agreement and Plan of Merger, dated as of January 17, 2018, by and among the Company, Wyndham Worldwide and WHG BB Sub, Inc. (the Merger Agreement).
In connection with the approval of the CorePoint Lodging distribution, the La Quinta Board of Directors has also set the distribution ratio, record date and distribution date for the spin-off. As a result, the following will occur:
| Subject to the satisfaction or waiver of certain conditions, the completion of the CorePoint Lodging spin-off, followed by the completion of the La Quinta Merger, is expected to be completed on May 30, 2018. |
| In connection with the spin-off distribution, La Quinta stockholders will receive one share of CorePoint Lodging for every one share of La Quinta, after giving effect to a 1-for-2 reverse stock split immediately prior to the distribution. |
| In connection with the closing of the Merger, La Quinta stockholders will be entitled to receive $8.40 in cash per share (or $16.80 in cash per share after giving effect to the 1-for-2 reverse stock split to occur immediately prior to the distribution), without interest. |
| Immediately following the distribution, CorePoint Lodging will be an independent, publicly traded company, and La Quinta will retain no ownership interest in CorePoint Lodging. |
| CorePoint Lodging is expected to begin regular-way trading on the New York Stock Exchange (NYSE) under the ticker symbol CPLG on May 31, 2018. |
Additional Details on the Merger with Wyndham
As previously announced, subject to the satisfaction or waiver of certain conditions, including completion of the CorePoint Lodging spin-off, immediately following the distribution of CorePoint Lodging common stock in the spin-off transaction, La Quinta will merge with a wholly owned subsidiary of Wyndham Worldwide in accordance with and subject to the terms of the Merger Agreement. In connection with the closing of the Merger, holders of La Quinta common stock will be entitled to receive $8.40 in cash per share (or $16.80 in cash per share after giving effect to the 1-for-2 reverse stock split to occur immediately prior to the distribution), without interest, for every share of La Quinta common stock they own. At a special meeting of stockholders of La Quinta held on April 26, 2018, the La Quinta stockholders, upon the recommendation of the La Quinta Board of Directors, voted in favor of the adoption of the Merger Agreement.
Additional Details on the Spin-Off
The La Quinta Board of Directors has approved a distribution of one share of CorePoint Lodging common stock for every two shares of La Quinta common stock held as of 5:00 p.m., Eastern Time on May 18, 2018, the record date for the distribution (or one share of CorePoint Lodging common stock for every one share of La Quinta common stock held as of the record date after giving effect to the 1-for-2 reverse stock split to occur immediately prior to the distribution). No fractional shares of CorePoint Lodging common stock will be issued. Instead, fractional shares of CorePoint Lodging common stock will be aggregated and sold on the open market, and the aggregate net proceeds of such sales will be distributed ratably in the form of cash payments to holders of La Quinta common stock who would otherwise have been entitled to receive a fractional share of CorePoint Lodging common stock. The distribution is expected to be effected after market close on May 30, 2018 (the distribution date). The distribution is taxable to stockholders and is subject to the satisfaction or waiver of certain applicable conditions described in the Information Statement included in the Registration Statement on Form 10 for CorePoint Lodging common stock.
Reverse Stock Split of La Quinta Common Stock
The La Quinta Board of Directors also approved that the 1-for-2 reverse stock split of shares of La Quinta common stock will be effective immediately prior to the distribution of shares of CorePoint Lodging common stock in the spin-off transaction. Every two shares of La Quinta common stock will be automatically combined into one share of La Quinta common stock. Fractional shares will be issued in connection with the reverse stock split.
La Quinta currently has approximately 117 million shares of common stock outstanding. The 1-for-2 reverse stock split will reduce the number of issued and outstanding shares of La Quinta common stock to approximately 59 million. Accordingly, approximately 59 million shares of CorePoint Lodging common stock will be distributed to La Quinta stockholders in the spin-off transaction.
Trading of La Quinta and CorePoint Lodging Common Stock
Following the spin-off, shares of CorePoint Lodging common stock will trade on the NYSE under the ticker symbol CPLG. La Quinta expects that on or about May 17, 2018, shares of CorePoint Lodging common stock will trade on a when issued basis under the ticker symbol CPLG WI. Shares of CorePoint Lodging common stock are expected to begin regular way trading on May 31, 2018, at which time trading in shares of La Quinta common stock will be suspended.
La Quinta stockholders who sell their shares of La Quinta common stock prior to or on the distribution date will also be selling their right to receive the distribution of shares of CorePoint Lodging common stock in the spin-off transaction. La Quinta stockholders are encouraged to consult with their financial advisors regarding the specific implications of selling La Quinta common stock.
La Quinta stockholders are not required to take any action to receive the shares of CorePoint Lodging common stock in the distribution, or in connection with the reverse stock split.
The distribution agent, transfer agent, and registrar for the shares of La Quinta and CorePoint Lodging common stock will be Computershare. For questions relating to the transfer or mechanics of the stock distribution or the reverse stock split, stockholders may contact Computershare c/o Shareholder Services at P.O. Box 505000, Louisville, KY 40233-5002, or by phone at: 1-800-962-4284. If shares are held by a bank, broker or other nominee, stockholders should contact that institution directly.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as outlook, believes, expects, potential, continues, may, will,
should, could, seeks, projects, predicts, intends, plans, estimates, anticipates or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled Risk Factors in La Quintas Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (SEC), as such factors may be updated from time to time in La Quintas periodic filings with the SEC, which are accessible on the SECs website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in La Quintas filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts: | ||||
Investor Relations | Media | |||
Kristin Hays | Teresa Ferguson | |||
214-492-6896 | 214-492-6937 | |||
investor.relations@laquinta.com | Teresa.Ferguson@laquinta.com |