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FORM 3 UNITED STATES SECURITIES AND EXCHANGE COMMISSION ------------------------------
------ WASHINGTON, D.C. 20549 OMB APPROVAL
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INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES OMB Number: 3235-0104
Expires: December 31, 2001
Estimated average burden
hours per response.........0.5
FILED PURSUANT TO SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934, SECTION 17(a) OF
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 OR SECTION 30(f) OF THE
INVESTMENT COMPANY ACT OF 1940
(PRINT OR TYPE RESPONSES)
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1. Name and Address of Reporting Person* 2. Date of Event 4. Issuer Name AND Ticker or Trading Symbol
Requiring Statement
CGLH Partners I LP (Month/Day/Year) Interstate Hotels Corporation (IHCO)
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(Last) (First) (Middle) 5. Relationship of Reporting Persons 6. If Amendment, Date
to Issuer of Original
8/31/00 (Check all applicable) (Month/Day/Year)
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C/ - Lehman Brothers Holdings Inc. 3. I.R.S. or ____ Director _X_ 10% Owner
200 Vesey Street Identification ____ Officer (give ___ Other (specify 7. Individual or
12th Floor Number of Reporting title below) below) Joint/Group
Person, if an Filing (Check
entity (Voluntary) Applicable Line)
__ Form filed by
_______________________________ ____________________________ One Reporting
(Street) Person
_x_ Form filed by More
Than One Reporting
Person
New York NY 10285
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(City) (State) (Zip) TABLE I-- NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
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1. Title of Security 2. Amount of Securities 3. Ownership 4. Nature of Indirect
(Instr. 4) Beneficially Owned Form: Direct Beneficial Ownership
(Instr. 4) (D) or Indirect (Instr. 5)
(I) (Instr. 5)
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction
5(b)(v).
POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED
IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY
VALID OMB CONTROL NUMBER.
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SEC 1473 (3-99)
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1. Title of Derivative Security 2. Date 3. Title and Amount of 4. Conver- 5. Owner- 6. Nature of
(Instr. 4) Exercisable Securities Underlying sion or ship Form Indirect
and Expiration Derivative Security Exercise of Deri- Beneficial
Date (Instr. 4) Price of vative Ownership
(Month/Day/ Derivative Security. (Instr. 5)
Year) Security
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Date Amount or Direct
Exer- Expira- Title Number of (D) or
cisable tion Date Shares Indirect (I)
(Instr. 5)
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Series B Convertible Preferred Stock, Upon 7 years Class A Common Stock, (3) $4.00 (3) (3)
par value $.01 per share issuance after par value $.01
(1) (2). issuance per share
(2)
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8.75% Convertible Subordinated Notes Upon 7 years Class A Common Stock, (3) $4.00 (3) (3)
issuance after par value $.01
(1) (2). issuance per share
(2)
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Explanation of Responses:
See attached continuation sheets.
See signature page attached September 11, 2000
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**Signature of Reporting Person Date
**Intentional misstatements or omissions of facts constitute Federal Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, see Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
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FORM 3
CONTINUATION SHEET
ITEM 1: CGLH Partners I LP
c/o Lehman Brothers Holdings Inc.
200 Vesey Street, 12th Floor
New York, NY 10285
ITEM 2: August 31, 2000
ITEM 4: Interstate Hotels Corporation (IHCO)
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Instruction 5(b)(v) list of other Reporting Persons:
This statement is being filed by CGLH Partners I LP, a Delaware limited
partnership and CGLH Partners II LP, a Delaware limited partnership (the
"Reporting Persons"). The principal business address of each of the
Reporting Persons is C/ - Lehman Brothers Holdings Inc., 200 Vesey Street,
12th Floor, New York, New York 10285.
Certain other entities and individuals affiliated with the Reporting Persons
may be deemed to be indirect beneficial owners of the securities which are
the subject of this filing, and to be part of a group, within the meaning of
Section 13 of the Securities Exchange Act of 1934, with the Reporting
Persons. Those entities have filed with the Securities and Exchange
Commission a statement on Schedule 13D on the date hereof in respect of such
beneficial ownership, which Schedule 13D is hereby incorporated herein by
reference.
EXPLANATION OF RESPONSES:
(1) On August 31, 2000, the Reporting Persons entered into a Securities Purchase
Agreement with the Company (the "Securities Purchase Agreement"), pursuant to
which the Reporting Persons agreed to purchase, subject to approval by the
stockholders of the Company and other customary closing conditions, (i) an
aggregate of 500,000 shares of the Company's Series B Convertible Preferred
Stock, par value $0.01 per share (the "Preferred Stock"), and having a stated
amount of $10.00 per share and (ii) 8.75% Convertible Subordinated Notes (the
"Notes") having an aggregate principal amount of $25,000,000.
The closing of the purchase of the Preferred Stock and the issuance of the Notes
(the "Closing") is expected to occur promptly after receipt of approval by the
Company's stockholders of the issuance of the Preferred Stock, the Notes and the
shares of Class A Common Stock issuable upon conversion of the Preferred Stock
and the Notes, assuming the satisfaction of the other conditions set forth in
the Securities Purchase Agreement.
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FORM 3
CONTINUATION SHEET
ITEM 1: CGLH Partners I LP
c/o Lehman Brothers Holdings Inc.
200 Vesey Street, 12th Floor
New York, NY 10285
ITEM 2: August 31, 2000
ITEM 4: Interstate Hotels Corporation (IHCO)
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(2) Each of the Preferred Stock and the Notes are convertible at any time after
issuance, subject to certain restrictions, into shares of the Company's Class A
Common Stock at a conversion rate of $4.00 per share, subject to anti-dilution
adjustments. The Notes will be due on the date seven years after their issuance
at the Closing and may be converted at any time until the close of business on
the last business day immediately preceding such due date. The terms of the
Preferred Stock require that they be redeemed by the Company on the seventh
anniversary of their issuance at the Closing, and provide that they may be
converted at any time prior to such date.
(3) The terms of the Notes and the Preferred Stock prohibit any single holder
from converting such securities if the conversion would cause such holder and
its affiliates or any group of which any of them is a member to have beneficial
ownership of more than 49% of the Company's Class A Common Stock after the
conversion. Accordingly, if the number of issued and outstanding shares of
Common Stock is otherwise unchanged at the Closing, the Reporting Persons will
not then have the right to convert the Notes and the Preferred Stock into more
than 5,778,646 shares of Common Stock. Absent this restriction, the Notes and
Preferred Stock would be initially convertible into an aggregate of 7,500,000
shares of Common Stock, representing approximately 55.2% of the outstanding
shares of Common Stock after giving effect to the conversion. In addition, if
all or part of the Notes and Preferred Stock are transferred to unaffiliated
persons so that no single person and its affiliates would, upon conversion, own
more than 49%, then 7,500,000 shares of Common Stock would be issuable upon
conversion of the Notes and the Preferred Stock.
The Preferred Stock will be issued in the name of, and directly beneficially
owned by, CGLH Partners I LP. The Notes will be issued to, and directly
beneficially owned by, CGLH Partners II LP.
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FORM 3
CONTINUATION SHEET
ITEM 1: CGLH Partners I LP
c/o Lehman Brothers Holdings Inc.
200 Vesey Street, 12th Floor
New York, NY 10285
ITEM 2: August 31, 2000
ITEM 4: Interstate Hotels Corporation (IHCO)
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SIGNATURES:
CGLH PARTNERS I LP
By: /s/ Joseph J. Flannery
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Name: Joseph J. Flannery
Authorized Signatory for CGLH
Partners I LP
CGLH PARTNERS II LP
By: /s/ Joseph J. Flannery
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Name: Joseph J. Flannery
Authorized Signatory for CGLH
Partners II LP
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