Under the terms of the merger agreement, Prime's stockholders will get $12.25 per share in cash, without interest. Prime has also announced that as of the expiration of the tender offer, last Friday, approximately $173.2 million aggregate principal amount of the company's 8-3/8% senior subordinated notes due 2012, constituting about 96.9% of the notes, had been tendered and not withdrawn in connection with the previously announced cash tender offer for the notes.
Prime, which controls the AmeriSuites, Wellesley Inns & Suites and Prime Hotels and Resorts brands, and has a number of properties under other brands, has a portfolio of 256 owned and franchised hotels totaling more than 33,600 rooms. Of those, Prime owns 112 properties with nearly 14,200 rooms outright. Blackstone, a private investment firm, has raised five real estate funds representing more than $6 billion in total equity.
For the merger, Bear, Stearns was Prime's financial advisor, and American Securities had the same role for Blackstone. Bank of America's CMBS Capital Markets Group provided Blackstone with acquisition financing. Legal advisors were Olshan Grundman Frome Rosenzweig & Wolosky for Prime, and Simpson Thacher & Bartlett for Blackstone.
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