Morgans Announces Pricing of Initial Public Offering
NEW YORK, NY, February 14, 2006. Morgans Hotel Group Co. (NASDAQ: MHGC), a fully integrated hospitality company that operates, owns, acquires and redevelops boutique hotels in gateway cities and select resort markets in the United States and Europe, announced today the initial public offering of 18,000,000 shares of its common stock. The offering was priced at $20.00 per share.
The Company has agreed to sell 15,000,000 shares of its common stock and selling stockholders have agreed to sell 3,000,000 shares of their common stock. At the closing of the initial public offering, which is scheduled for February 17, 2006, the Company expects to receive net proceeds of approximately $275.0 million. The Company will not receive any proceeds from shares sold by selling stockholders. Morgans Hotel Group Co. intends to use the net proceeds of the offering to repay outstanding debt and preferred equity interests, to finance a portion of the acquisition of James Hotel Scottsdale and for general corporate purposes, including hotel renovations.
Morgans Hotel Group Co. has also granted to the underwriters an option to purchase up to an additional 2,700,000 shares of common stock to cover over-allotments, if any. The offering is being led by Morgan Stanley & Co. Incorporated and Merrill Lynch & Co., acting as joint book-running managers, and Citigroup, Banc of America Securities LLC, Thomas Weisel Partners LLC, Jefferies & Company and JMP Securities, acting as co-managers.
The common stock offering may be made only by means of a prospectus, copies of which may be obtained from Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, New York, New York 10014, or by e-mail to prospectus@morganstanley.com; or Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080, Attention: Equity Capital Markets or by calling 212-449-4600.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on February 13, 2006. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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