Starwood Hotels & Resorts Worldwide, Inc. said today that Credit Suisse First Boston Corporation, acting on behalf of the Underwriters in its public offering of 11.35 million shares of ITT Educational Services, Inc. (NYSE: ESI) exercised the option to purchase an additional 1.7 million shares to cover over-allotments. As a result, after the offering Starwood`s ownership in ESI will be 35%. The offering is expected to generate proceeds of about $315 million, which will be utilized to pay down debt.
``The sale of a portion of our ownership interest in ESI is consistent with our previously announced plan to sell non-strategic assets, maximize shareholder value, and focus on our core lodging and gaming units,`` said Barry S. Sternlicht, chairman and chief executive of Starwood Hotels and Resorts (The Trust) and chairman of the board of directors for Starwood Hotels and Resorts Worldwide, Inc. (The Corporation).
A copy of the prospectus relating to the offering may be obtained from Credit Suisse First Boston Corporation, Eleven Madison Avenue, Prospectus Department, New York, New York 10010-3629, (Telephone Number 212-325-2580).
ESI is a leading proprietary provider of technology-oriented post-secondary degree programs in the United States. The company offers associate, bachelor, and master degree programs and non-degree diploma programs to over 24,000 students through a system of 63 ITT Technical Institutes located in 27 states.
Starwood Hotels & Resorts Worldwide, Inc., through its Sheraton, Westin and Caesars subsidiaries, is one of the leading hotel and gaming operating companies in the world. Starwood Hotels & Resorts is the largest real estate investment trust in the United States. Shares of Starwood Hotels & Resorts Worldwide, Inc. are paired and trade together with shares of Starwood Hotels & Resorts (NYSE: HOT).