This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Blackstone's La Quinta Checks Into Public Markets

Stocks in this article: LQ BX

NEW YORK (The Deal) -- Hotel chain operator La Quinta Holdings (LQ), backed by the Blackstone Group, priced its initial public offering shares at $17 each late Tuesday.

The pricing fell below the initial $18 to $21 per share it anticipated in March in regulatory filings, putting an equity value on the chain of up to $2.5 billion. At $17 per share, La Quinta will have a market value of around $2.1 billion.

The chain is going to sell 38.25 million shares, raising about $618 million after underwriter discounts and commissions. The company is going to use the proceeds to pay down about $2.7 billion in long-term debt.

Its stock opened Wednesday below pricing at $16.75 per share on the New York Stock Exchange.

WATCH: More market videos from TheStreet TV

The underwriters hold a 30-day overallotment option to buy up to an additional 5.7 million shares. Blackstone is going to own a 64% stake in La Quinta after the offering is completed, assuming the underwriters exercise their option.

Irving, Texas-based La Quinta operates 834 hotels, most of them franchised, that hold more than 84,000 rooms across North America, Mexico, Colombia and Honduras.

In 2013, La Quinta generated an adjusted Ebitda of $326.8 million on $873.9 million in revenue compared to an adjusted Ebitda of $297.8 million on $818 million in revenue for 2012.

Blackstone acquired La Quinta in 2006 for $3.4 billion in cash and debt.

The private equity firm has had a field day with hotel properties as the travel industry, especially for bread-and-butter business travelers, revived during the recovery. Last year, Blackstone took both Extended Stay America Inc. and Hilton Worldwide Holdings Inc. public.

JPMorgan Chase & Co., Morgan Stanley, Bank of America Merrill Lynch, Citigroup Inc., Credit Suisse Group, Deutsche Bank Securities Inc., Goldman, Sachs & Co. and Wells Fargo Securities LLC are joint bookrunners on the offering.

La Quinta said it expects to complete the offering by April 14.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,856.24 +78.09 0.44%
S&P 500 2,073.80 +12.57 0.61%
NASDAQ 4,772.9150 +24.5190 0.52%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs