La Quinta Prices IPO Below Range

(RTTNews) - Hotel operator La Quinta Holdings Inc. said Tuesday that it has priced its initial public offering of 38.25 million shares of its common stock at a price to the public of $17.00 per share, which is below its previously estimated price range of $18.00 to $21.00 a share.

The company has granted the underwriters a 30-day option to purchase up to an additional 5,737,500 shares at the initial public offering price, less underwriting discounts and commissions.

The shares are expected to begin trading on the New York Stock Exchange on Wednesday, April 9 under the symbol "LQ".

The offering is expected to close on April 14.

The net proceeds of the offering are expected to be about $618 million after deducting underwriting discounts and commissions and before deducting estimated offering expenses, prior to any exercise of the underwriters' option to purchase additional shares.

The company plans to use the net proceeds from the offering, together with the net proceeds from the senior secured term loan facility of its wholly-owned subsidiary and cash on hand, to repay outstanding indebtedness, with any remaining balance to be used for general corporate purposes.