<PAGE> 1
- -------- ------------------------------
FORM 3 OMB APPROVAL
- -------- ------------------------------
OMB Number: 3235-0104
Expires: SEPTEMBER 30,1998
Estimated average burden
hours per response ...... 0.5
------------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
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
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1. Name and Address of Reporting Person* 2. Date of Event Requiring 4. Issuer Name and Ticker or 6. If Amendment, Date
EXCEL LEGACY CORPORATION Statement Trading Symbol of Original
- ---------------------------------------- (Month/Day/Year) PRICE ENTERPRICES, INC. (Month/Day/Year)
(Last) (First) (Middle) (NASDAQ NATIONAL MARKET: COMMON STOCK
SYMBOL-PREN; PREFERRED STOCK SYMBOL-PRENP)
16955 VIA DEL CAMPO, SUITE 100 JUNE 2,1999(1) ----------------------------------
- ---------------------------------------- ---------------------------- 5. Relationship of Reporting -----------------------
(Street) 3. IRS or Social Security Person to Issuer 7. Individual or Joint/
Number of Reporting (Check all applicable) Group Filing (Check
SAN DIEGO, CA 92127 Person (Voluntary) Director X(1) 10% Owner applicable line)
- -------------------------------------- 33-0781747 ----- ----- X Form filed by
(City) (State) (Zip) ---------------------------- Officer Other ----- One Reporting
----- (give ----- (specify Person
title below) below) Form filed by
----- More than One
---------------------------------- Reporting Person
- ------------------------------------------------------------------------------------------------------------------------------------
TABLE 1 -- NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
- ------------------------------------------------------------------------------------------------------------------------------------
1. Title of Security 2. Amount of Securities 3. Ownership Form: 4. Nature of Indirect
(Instr. 4) Beneficially Owned Direct (D) or Beneficial
(Instr. 4) Indirect (I) Ownership (Instr. 5)
(Instr. 5)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK, PAR VALUE $.0001 PER SHARE (1) (1) (1)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
*If the form is filed by more than one Reporting Person, see Instruction 5(b)(v). (8/96)
</TABLE>
<PAGE> 2
<TABLE>
<CAPTION>
FORM 3 (CONTINUED) TABLE II -- DERIVATIVE SECURITIES BENEFICIALLY OWNED
(E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1. Title of Derivative Security 2. Date 3. Title and Amount of 4. Conver- 5. Owner- 6. Nature of Indirect
(Instr. 4) Exercisable and Securities Underlying sion or ship Beneficial Ownership
Expiration Date Derivative Security Exercise Form of (Instr. 5)
(Month/Day/ (Instr. 4) Price of Deriv-
Year) Deri- ative
vative Security:
Security
------------------------------------------------- Direct
Date Expira- Amount or (D) or
Exercis- tion Title Number Indirect (I)
able Date of Shares (Instr. 5)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Explanation of Responses:
**Intentional misstatements or omissions of facts constitute Federal Criminal Violations. /s/ S. ERIC OTTESEN JUNE 10, 1999
----------------------- --------------
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a) **Signature of Reporting Person Date
S. ERIC OTTESEN
Note: File three copies of this Form, one of which must be manually signed. SR. VICE PRESIDENT AND GENERAL COUNSEL
If space provided is insufficient, see Instruction 6 for procedure. EXCEL LEGACY CORPORATION
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.
Page 2
SEC 1473 (7/96)
</TABLE>
<PAGE> 3
FORM 3 CONTINUATION SHEET
EXPLANATION OF RESPONSE
(1) This Initial Statement of Beneficial Ownership on Form 3 is filed by
Excel Legacy Corporation, a Delaware corporation ("Legacy"). On June 2,
1999, Legacy entered into an agreement with Price Enterprises, Inc.
("PREN") pursuant to which Legacy has agreed, subject to certain
conditions including regulatory clearances, to make an exchange offer at
$8.50 per share for any and all shares of PREN Common Stock (the
"Company Agreement"). The exchange offer will consist of per share
consideration for PREN Common Stock of $4.25 in cash, at least $2.75 in
principal amount of newly issued 9% Convertible Subordinated Debentures
due 2004 of Legacy (convertible at any time into Legacy's Common Stock
at $5.50 per share) ("Debentures"), and $1.50 in whatever combination
Legacy elects of cash, Debentures or newly issued 10% Senior Notes due
2004 of Legacy. Legacy has the right prior to commencing the exchange
offer to elect to offer $8.50 per share in cash for any and all shares
of PREN Common Stock.
The Company Agreement was entered into pursuant to an agreement dated
May 12, 1999 (the "Stockholders Agreement" and, together with the
Company Agreement, the "Agreements") among Legacy, Sol Price, as trustee
of certain trusts, and certain other PREN stockholders (collectively,
the "Selling Stockholders"). Pursuant to the Stockholders Agreement, on
May 21, 1999, the Selling Stockholders deposited 4,464,382 shares of
PREN Common Stock into escrow and Legacy deposited $1,000,000 in cash
into escrow. Following the execution of the Company Agreement, Legacy
deposited additional cash into escrow such that the total amount of cash
held in escrow equals $7,500,000. On June 4, 1999, the Selling
Stockholders deposited additional shares of PREN Common Stock into
escrow such that the aggregate number of shares held in escrow equals
8,014,970 shares of PREN Common Stock (representing approximately 51.1%
of the PREN voting power). The PREN Common Stock held in escrow will be
tendered in the exchange offer, and the cash held in escrow will be
released to fund part of the cash consideration in the exchange offer.
If the transaction is consummated as planned, Legacy will have sole
power to vote and sole power to direct the disposition of all PREN
Common Stock held in escrow. However, Legacy does not currently possess
voting or dispositive power with respect to any PREN Common Stock.
The foregoing description of the Agreements is qualified in its entirety
by reference to the Company Agreement, a copy of which is filed as an
exhibit to Legacy's Current Report on Form 8-K filed with the Securities
and Exchange Commission on June 4, 1999 (File No. 0-23503) and is
incorporated by reference herein, and the Stockholders Agreement, a copy
of which is filed as an exhibit to Legacy's Current Report on Form 8-K
filed with the Securities and Exchange Commission on May 14, 1999 (File
No. 0-23503) and is incorporated by reference herein.
