UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: pleached Big red star, 1000 posts Old School Fool Global Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8  
Subject: Lots going on Date: 3/14/2007 1:38 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
BEE has been busy, but so have I so I'm behind here. And it ultimately it may not matter....

The mundane news:

-- BEE announced their dividend:
"$0.53125 per share of 8.50 percent Series A Cumulative Redeemable Preferred Stock payable on March 30, 2007 to shareholders of record on March 16, 2007. Additionally, the company's Board of Directors has declared a quarterly dividend of $0.51563 per share of 8.25 percent Series B Cumulative Redeemable Preferred Stock and 8.25 percent Series C Cumulative Redeemable Preferred Stock payable on March 30, 2007 to shareholders of record on March 16, 2007."


-- BEE recapitalizes some debt:

"Strategic Hotels & Resorts Inc., a real estate investment trust that owns and manages hotels and resorts, said Monday it received a new $415 million revolving credit facility and three property secured financings totaling $318.5 million.

The debt recapitalization lowered the company's weighted average interest rate to 5.65 percent.

The company's previous credit facility had commitments totaling $225 million, with an accordion feature allowing for additional borrowing up to $500 million.

The new facility, which was led by Deutsche Bank Securities and Citigroup Global Markets, matures in four years with a one-year extension available to the company.

"The recapitalizations improve our balance sheet position by providing us with greater financial flexibility to execute our internal investment plans and to manage our capital structure," said James Mead, chief financial officer of Strategic Hotels."


-- BEE gives up on their New Orleans property and sells.

But the big news is that some private equity firms *may* be looking to take BEE private ( hence the spike in price/share ):

"The company is reportedly a potential takeover target for private equity firms including Walton Street Capital LLC, The Blackstone Group and possibly The Carlyle Group. Donnelly estimates Strategic Hotels may get an offer of $24 to $26 per share, or 9 percent to 18 percent above its closing price Friday of $22.10 on the New York Stock Exchange.

In a client note, Donnelly said Strategic Hotels may face increased shareholder pressure to explore strategic alternatives on the takeover rumors and the possibility that management is not willing to sell.

If Strategic Hotels is in talks with one or more parties, Donnelly said the news could help management's negotiating leverage.

"If bids are unsolicited, we would expect the initial offer to be slightly above Strategic Hotels' all-time high share price of $23.56 and potentially pushed hig"


Which raises some questions about the role of BEE in one's portfolio, especially when there are some companies out there trading at really compelling prices right now.

dan


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement