Four Seasons redeems Liquid Yield Option(TM) Notes
September 24 2004 - 8:34AM
PR Newswire (US)
Four Seasons redeems Liquid Yield Option(TM) Notes TORONTO, Sept.
24 /PRNewswire-FirstCall/ -- Four Seasons Hotels Inc. (TSX Symbol
"FSH"; NYSE Symbol "FS") today announced that it has redeemed all
of its Liquid Yield Option(TM) Notes ("LYONs") due 2029 (Zero
Coupon - Subordinated: CUSIP 35100EAD6) on September 23, 2004 for
US$328.73 cash per US$1,000 principal amount at maturity (the
redemption price being the issue price plus interest that is
accrued but unpaid to but excluding September 23, 2004) for an
aggregate payment of US$215,450,957. In accordance with Canadian
generally accepted accounting principles, Four Seasons will
allocate the consideration paid on the redemption to the liability
and equity components of the LYONs based on their relative fair
values at the date of redemption. Four Seasons anticipates that it
will recognize a pre-tax accounting loss of approximately $14.6
million related to the debt component of the LYONs (representing
the difference between the carrying value of the debt component and
the relative fair value of the debt component - estimated at the
present value of the amount due on maturity, using an assumed
25-year interest rate of 8.474% per annum, compounding
semi-annually). This loss will be recorded in the statement of
operations of Four Seasons in its third quarter. In addition, Four
Seasons anticipates that it will recognize a pre-tax accounting
gain on the extinguishment of the equity component of the LYONs of
approximately $8.1 million. This gain will be recognized in
contributed surplus in the third quarter. The net impact on
shareholders' equity from the extinguishment of the debt and equity
components of the LYONs is anticipated to be a reduction of
approximately $6.5 million. All dollar amounts referred to in this
news release are in Canadian dollars unless otherwise noted. With a
history spanning four decades and a portfolio that extends
worldwide, Four Seasons Hotels and Resorts is the world's leading
operator of luxury hotels, currently managing 64 properties in 29
countries. This news release contains "forward-looking statements"
within the meaning of federal securities laws. These statements
concern anticipated future events, results, circumstances,
performance or expectations that are not historical facts. These
statements are not guarantees of future performance and are subject
to numerous risks and uncertainties that can affect our actual
results and could cause our actual results to differ materially
from those expressed or implied in any forward-looking statement
made by us or on our behalf. These statements are made as of the
date of this news release and, except as required by applicable
law, we undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. DATASOURCE: Four Seasons Hotels and
Resorts CONTACT: Douglas L. Ludwig, Chief Financial Officer and
Executive Vice President, (416) 441-4320; Barbara Henderson, Vice
President Taxation and Investor Relations, (416) 441-4329
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