IRVING, TX—La Quinta Holdings Inc.’s board of directors has formally approved the distribution to its stockholders of all of the outstanding shares of common stock of CorePoint Lodging Inc., 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 with Wyndham Worldwide Corporation.
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.