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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 21, 2009
RED LION HOTELS CORPORATION
(Exact name of registrant as specified in its charter)
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Washington
(State or Other Jurisdiction of Incorporation)
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000-13957
(Commission File Number)
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91-1032187
(I.R.S. Employer Identification No.) |
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201 W. North River Drive
Suite 100
Spokane, Washington
(Address of principal executive offices)
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99201
(Zip Code) |
Registrants telephone number, including area code: (509) 459-6100
Former name or former address if changed since last report
Check the the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
þ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
On January 21, 2009, the Board of Directors of Red Lion Hotels Corporation. (the
Company) declared a dividend of one preferred share purchase right (a Right)
for each outstanding share of common stock, par value $0.01 per share (the Common
Shares), of the Company. The dividend is payable on February 2, 2009 (the Record
Date) to the stockholders of record on that date. Each Right entitles the registered holder to
purchase from the Company one tenth of a share of Series A Participating Preferred Stock, par value
$0.01 per share (the Preferred Shares), of the Company at a price of $15 per one tenth of
a Preferred Share (the Purchase Price), subject to adjustment. The description and terms
of the Rights are set forth in the Rights Agreement, dated January 26, 2009 (the Rights
Agreement), between the Company and American Stock Transfer & Trust Company. as Rights Agent
(the Rights Agent).
Distribution Date; Exercisability
Initially, the Rights will be attached to all Common Share certificates and no separate Rights
certificates will be issued. Separate certificates evidencing the Rights (Right
Certificates) will be mailed to holders of record of the Common Shares as of the close of
business on the earlier to occur of (i) the tenth day following the public announcement that a
person or group of affiliated or associated persons (an Acquiring Person) has acquired
beneficial ownership of 20% or more of the outstanding Common Shares or (ii) the tenth day (or such
later day as the Board of Directors of the Company may determine prior to such time as any person
becomes an Acquiring Person) following the commencement of, or announcement of an intention to make
a tender offer or exchange offer the consummation of which would result in the beneficial ownership
by a person or group of 20% or more of the outstanding Common Shares (the earlier of such dates
being the Distribution Date).
The Rights Agreement provides that, until the Distribution Date (or earlier redemption or
expiration of the Rights), (i) the Rights will be transferred with and only with the Common Shares,
(ii) new Common Share certificates issued after the Record Date upon transfer or new issuance of
Common Shares will contain a notation incorporating the Rights Agreement by reference and (iii) the
surrender for transfer of any certificates for Common Shares outstanding as of the Record Date will
also constitute the transfer of the Rights associated with the Common Shares represented by such
certificate.
The Rights are not exercisable until the Distribution Date. The Rights will expire on February
1, 2011 (the Expiration Date), unless the Expiration Date is amended or unless the Rights
are earlier redeemed or exchanged by the Company, in each case, as described below.
Flip-In
If a person or group becomes an Acquiring Person at any time after the date of the Rights
Agreement (with certain limited exceptions) each holder of a Right will thereafter have the right
to receive, upon exercise, Common Shares (or, in certain circumstances, Preferred Shares or other
similar securities of the Company) having a value equal to two times the exercise price of the
Right. Notwithstanding any of the foregoing, following the existence of an Acquiring Person, all
Rights that are, or (under certain circumstances specified in the Rights Agreement) were,
beneficially owned by any Acquiring Person will be null and void.
For example, at an exercise price of $15 per Right, each Right not owned by an Acquiring
Person following an event set forth in the preceding paragraph would entitle its holder to purchase
$30 worth of Common Shares (or other consideration, as noted above). Assuming a value of $3.00 per
Common Share at such time, the holder of each valid Right would be entitled to purchase ten Common
Shares for $15.
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Flip-Over
In the event that the Company is acquired in a merger or other business combination
transaction or 50% or more of its consolidated assets or earning power are sold after a person or
group has become an Acquiring Person, proper provision will be made so that each holder of a Right
will thereafter have the right to receive, upon the exercise thereof at the then-current exercise
price of the Right, that number of shares of common stock of the acquiring company, which at the
time of such transaction will have a market value of two times the exercise price of the Right.
Exchange
At any time after any person or group becomes an Acquiring Person and prior to the acquisition
by such person or group of 50% or more of the outstanding Common Shares, the Board of Directors of
the Company may exchange the Rights (other than Rights owned by such person or group which will
have become void), in whole or in part, at an exchange ratio of one Common Share, or one
one-hundredth of a Preferred Share (or of a share of a class or series of the Companys preferred
stock having equivalent rights, preferences and privileges), per Right (subject to adjustment).
Redemption
At any time prior to the earlier of the exercise of the Rights or the Final Expiration Date of
the Rights Agreement, the Board of Directors of the Company may redeem the Rights, in whole but not
in part, at a price of $0.01 per Right (the Redemption Price). The redemption of the
Rights may be made effective at such time on such basis with such conditions as the Board of
Directors, in its sole discretion, may establish. Immediately upon any redemption of the Rights,
the right to exercise the Rights will terminate and the only right of the holders of Rights will be
to receive the Redemption Price.
Amendment
The terms of the Rights may be amended by the Board of Directors of the Company without the
consent of the holders of the Rights, except that from and after the Distribution Date no such
amendment may adversely affect the interests of the holders of the Rights (other than the Acquiring
Person).
Adjustment
The number of outstanding Rights and the number of one tenths of a Preferred Share issuable
upon exercise of each Right are subject to adjustment under certain circumstances.
Preferred Stock
Because of the nature of the Preferred Shares dividend, liquidation and voting rights, the
value of the one tenth interest in a Preferred Share purchasable upon exercise of each Right should
approximate the value of one Common Share.
Rights of Holders
Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Company, including, without limitation, the right to vote or to receive dividends.
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Certain Anti-Takeover Effects
The Rights will not prevent a takeover of the Company. However, the Rights may cause
substantial dilution to a person or group that acquires 20% or more of the outstanding Common
Shares. The Rights however, should not interfere with any merger or other business combination
approved by the Board of Directors of the Company.
Further Information
A copy of the Rights Agreement is attached as Exhibit 4.2 to this Current Report on Form 8-K.
A copy of the Rights Agreement is available free of charge from the Company. This summary
description of the Rights does not purport to be complete and is qualified in its entirety by
reference to the Rights Agreement, which is hereby incorporated herein by reference.
Item 3.03. Material Modification to Rights of Security Holders.
The information set forth in Items 1.01 and 5.03 is incorporated by reference.
Item 5.03. Amendment to Articles of Incorporation or Bylaws; Change in Fiscal Year.
In connection with the adoption of the Rights Agreement on January 21, 2009, the Company filed
Artiles of Amendment creating Series A Participating Preferred Stock with the Secretary of State of
the State of Washington. See the description set forth under Item 1.01 Entry into a Material
Definitive Agreement for a more complete description of the rights and preferences of the Series A
Participating Preferred Stock. A copy of the Articles of Amendment for the Series A Participating
Preferred Stock is attached as Exhibit 3.3 to this Current Report on Form 8-K and incorporated
herein by reference.
Item 8.01. Other Events.
On January 22, 2009, the company issued a press release announcing the adoption of a
stockholder rights plan. A copy of the press release is attached as Exhibit 99.1 to this Current
Report on Form 8-K and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. |
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Description |
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3.3
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Articles of Amendment for the Series A Participating Preferred Stock, as filed with the
Secretary of State of Washington on January 27, 2009. |
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4.2
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Rights Agreement, dated as of January 26, 2009, between Red Lion Hotels Corporation and
American Stock Transfer & Trust Company LLC, as Rights Agent. |
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99.1
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Press Release, dated January 22, 2009, announcing adoption of the Shareholder Rights Plan. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Red Lion Hotels Corporation
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By: |
/s/ Anthony F. Dombrowik
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Name: |
Anthony F. Dombrowik |
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Title: |
Senior Vice President and Chief Financial Officer |
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Date: January 27, 2009
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EXHIBIT INDEX
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Exhibit No. |
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Description |
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3.3
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Articles of Amendment for the Series A Participating Preferred Stock, as filed with the
Secretary of State of Washington on January 27, 2009. |
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4.2
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Rights Agreement, dated as of January 26, 2009, between Red Lion Hotels Corporation and
American Stock Transfer & Trust Company, as Rights Agent. |
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99.1
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Press Release, dated January 22, 2009, announcing adoption of the Shareholder Rights Plan. |
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