Hollywood Park Inc. gallops out $25 million in depositary shares.Inglewood-based Hollywood Park Hollywood Park may be several places:
2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. stock shares, with company management corralling and purchasing nearly half, or 1.1 million shares. Sold at $10 per depositary share, the securities -- each of which represents 1/100 of a share of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". -- will raise $25 million. The depositary shares do not represent full shares of Hollywood Park stock, but can be redeemed for common stock at $15 per share. The company cannot call the depositary shares until after Jan. 1, 1996. The proceeds will allow the company, which owns and operates Hollywood Park race track, to retire high interest bank debt and possibly fund construction of a casino card club approved by local voters last November. Through its underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. , PaineWebber Inc., the company on Feb. 2 took advantage of its over-allotment option to sell an additional 250,000 shares to PaineWebber at $10 per share, raising another $2.5 million for the company. The over-allotment option is a clause in the underwriting agreement Underwriting agreement The contract between a corporation issuing new publicly offered securities and the managing underwriter as agent for the underwriting group. Compare to agreement among underwriters. which allows the company to sell more shares through the syndicate in the case of high public demand. With the offering, directors and officers of the company hiked their stake in Hollywood Park to about 36 percent from 31 percent. R.D. Hubbard, chairman of Hollywood Park's board since 1991, increased his stake in the company to 20.2 percent from 15.6 percent. Hubbard, 57, was paid $266,667 salary and bonus last year. At least one local analyst said the high percentage of stock owned by management was a positive for the company. "Some brokers will say, 'Oh, management owns too much,' but for me it's a good thing; they have a stake," said Mike Holtrey, an analyst and branch manager with Baraban Securities, a Long Beach-based brokerage firm. "The offering was well-received. It was not a real hot issue, but it was all placed." Last week, the company's stock was trading at $12.50 per share. As of Dec. 31, Hollywood Park had 9.2 million shares of common stock outstanding. G. Michael Finnigan, chief financial officer for Hollywood Park, said the issue was "significantly oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. " and said the company could have sold $4 million more in shares "with no problem." The stock will pay dividends of 7 percent annually and shares can be converted into common stock after Jan. 1, 1996. Company book value was a negative 39 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. before the offering and $2.05 after the offering, a company spokesman said. Hollywood Park reported a $2.3 million profit during the third quarter of 1992 as compared to a $373,000 loss a year earlier. "There was strong institutional demand and unsatisfied demand," said Lynn P. Reitnouer, a member of Hollywood Park's board and a partner with Crowell, Weedon & Co., an L.A.-based brokerage firm which was not involved with the financing. The strong stock market and increased interest in leisure, recreation and gambling stocks both helped boost investor demand for the deal, Reitnouer said. The offering was the first by Hollywood Park since the company consolidated last year and embarked on a $100 million expansion plan. Finnigan said a $55 million, 10-year private note offering is planned by the end of March. "This will take out all our bank debt and will leave us with $20 million for the card club," said Finnigan, who estimated the club will cost about $12 million to $15 million. Hollywood Park is on 335 acres adjacent to the Great Western Forum in Inglewood. The casino-style card club is part of a strategy to develop other sports and recreational facilities Noun 1. recreational facility - a public facility for recreation recreation facility facility, installation - a building or place that provides a particular service or is used for a particular industry; "the assembly plant is an enormous facility" besides live horse racing horse racing, trials of speed involving two or more horses. It includes races among harnessed horses with one of two particular gaits, among saddled Thoroughbreds (or, less frequently, quarterhorses) on a flat track, or among saddled horses over a turf course with . The club is expected to be completed by early 1994 and a proposed 16,000-seat music dome could be completed in the next five years. In October, the company opened a $1.7 million, 14-acre golf and sports center. Hollywood Park officials claim the expansion will create 3,000 full-time jobs locally. "In the next few years, we will look very bright," said Finnigan. The company is the successor to Hollywood Park Turf Club Turf Club may refer to:
REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Enterprises Inc. in 1981. It was renamed Hollywood Park last year. |
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