Strategy 1: "always use other people's money." (Corporate Finance)

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Date: May-June 1991
From: Financial Executive(Vol. 7, Issue 3)
Publisher: Financial Executives International
Document Type: Article
Length: 1,250 words

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Abstract :

La Quinta Motor Inns Inc (San Antonio, TX) is a chain of 210 motels operating in 29 states, about half of which are located in Texas. The firm finances its activities primarily through joint ventures with insurance companies, including Prudential, Metropolitan Life, New York Life, and CIGNA. The joint venture structure typically divides ownership on a 50-50 basis, although CIGNA took a 75% ownership interest in exchange for the capital it provided. The joint venture process has proved a reliable means of raising capital. In addition, the firm raised capital through an issue of industrial revenue bonds and a master-limited partnership.

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Gale Document Number: GALE|A10906084