-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FOC10C4hDnjFw08dT+6th1GK/g3az/oMdXzAQjE1xEuK+cfEQH6j9mZoUEgbEnuZ EHAsgoH+ZINFh3oLo1Ibcg== 0000928385-97-000323.txt : 19970222 0000928385-97-000323.hdr.sgml : 19970222 ACCESSION NUMBER: 0000928385-97-000323 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19970220 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CHOICE HOTELS INTERNATIONAL INC CENTRAL INDEX KEY: 0001018146 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 521985619 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-47377 FILM NUMBER: 97539656 BUSINESS ADDRESS: STREET 1: 10750 COLUMBIA PIKE CITY: SILVER SPRING STATE: MD ZIP: 20901 BUSINESS PHONE: 3015935600 FORMER COMPANY: FORMER CONFORMED NAME: CHOICE HOTELS HOLDINGS INC DATE OF NAME CHANGE: 19960705 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: BAINUM STEWART JR CENTRAL INDEX KEY: 0001034261 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 213445874 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 11555 DARNESTOWN ROAD CITY: GAITHERSBURG STATE: MD ZIP: 20878 BUSINESS PHONE: 3019794400 MAIL ADDRESS: STREET 1: 11555 DARNESTOWN ROAD CITY: GAITHERSBURG STATE: MD ZIP: 20878 SC 13D 1 SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. _________)* CHOICE HOTELS INTERNATIONAL, INC. ------------------------------------------------------------------ (Name of Issuer) Common Stock ------------------------------------------------------------------ (Title of Class of Securities) 170-380-10-9 ---------------------------- (CUSIP Number) Patricia Bowditch (301) 495-4400 8737 Colesville Road, Suite 800, Silver Spring, MD 20910 ___________________________________________________________________ (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) November 1, 1996 ------------------------------------------------------------------ (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b) (3) or (4), check the following box ( ). *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP No. 170-380-10-9 13D Page 2 of 5 - ---------------------- --- ----------- 1 Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person Stewart Bainum, Jr. S.S. #: ###-##-#### 2 Check the Appropriate Box if a Member of a Group* (a) ( ) (b) ( ) 3 SEC Use Only 4 Source of Funds 00 5 Check Box if Disclosure of Legal Proceeding is Required Pursuant to Items 2(C) or 2(E) ( ) 6 Citizenship or Place of Organization USA Number of Shares Beneficially Owned by Each Reporting Person with: 7 Sole Voting Power 800,963 8 Shared Voting Power 5,347,497 9 Sole Dispositive Power 10,633,974 10 Shared Dispositive Power 5,347,497 11 Aggregate Amount Beneficially Owned by Each Reporting Person 15,981,471 12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares 13 Percent of Class Represented by Amount in Row (11) 25.08% 14 Type of Reporting Person IN CUSIP No. 170-380-10-9 13D Page 3 of 5 - ---------------------- --- ----------- Item 1. Security and Issuer (a) Name of Issuer: Choice Hotels International, Inc. (b) Address of Issuer's Principal Executive Offices: 10750 Columbia Pike Silver Spring, MD 20901 (c) Title and Class of Securities: Common Stock Item 2. Identify and Background (a) Name: Stewart Bainum, Jr. (b) Business Address: 11555 Darnestown Road Gaithersburg, MD 20878 (c) Present Principal Employment: Chief Executive Officer: Manor Care, Inc. 11555 Darnestown Road Gaithersburg, MD 20878 (d) Record of Convictions: During the last five years, Stewart Bainum, Jr. has not been convicted in a criminal proceeding (excluding traffic violations or simililar misdemeanors.) (e) Record of Civil Proceedings: During the last five years, Stewart Bainum, Jr. was not a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating such activities subject to, federal or state securities laws or finding any violation with respect to such laws. (f) Citizenship: Reporting Person is a citizen of the United States. Item 3. Source and Amount of Funds or Other Consideration The Reporting Person utilized no funds in the acquisition of the securities of the issuer triggering the filing of this 13D. Item 4. Purpose of Transaction All of the Shares were acquired by the Reporting person in transactions which involved no independent action on the part of the Reporting Person. All of the Shares of Common Stock of Choice were distributed to shareholders of Manor Care, Inc. (its former parent) on November 1, 1996. On December 31, 1996 a family real estate and investment corporation owning shares of the issuer was recapitalized in connection with such corporation's conversion to a Subchapter S tax status, resulting in an increase in the indirect ownership of the Reporting Person. The Reporting Person holds the Shares for investment purposes. The Reporting Person has no present plans or intentions which would result in or relate to any of the transactions described in Subparagraphs (a) through (j) of Item 4 of Schedule 13D. Item 5. Interest in Securities of the Issuer (a) Amount and percentage beneficially owned: Reporting Person: 15,981,471 shares, including 549,152 shares owned directly by the Stewart Bainum, Jr. Declaration of Trust dated March 13, 1996, the sole trustee and beneficiary of which is the reporting person. Also includes 5,417,761 shares owned by Bainum Associates Limited Partnership ("Bainum Associates") and 4,415,250 shares owned by MC Investments CUSIP No. 170-380-10-9 13D Page 4 of 5 Limited Partnership ("MC Investments"), in both of which Mr. Bainum, Jr. is managing general partner with the sole right to dispose of the shares; 3,567,869 shares held directly by Realty Investment Company, Inc. ("Realty"), a real estate management and investment company in which Mr. Bainum, Jr. has shared voting authority; 1,779,628 shares owned by Mid Pines Associates Limited Partnership ("Mid Pines"), in which Mr. Bainum, Jr. is managing general partner and has shared voting authority and 10,600 shares owned by the Foundation for Maryland's Future, in which Mr. Bainum, Jr. is the sole director. Also includes 239,000 shares which Mr. Bainum, Jr. has the right to acquire pursuant to stock options which are presently exercisable or which become exercisable within 60 days after the date of this report, and 1,504 and 707 shares, respectively, which Mr. Bainum, Jr. has the right to receive upon termination of his employment with the Company pursuant to the terms of the Choice Hotels International, Inc. Retirement Savings and Investment Plan and the Choice Hotels International, Inc. Nonqualified Retirement Savings and Investment Plan. (b) Number of shares as to which such person has: (i) Sole Voting Power 800,963 (ii) Shared Voting Power 5,347,497 (iii) Sole Dispositive Power 10,633,974 (iv) Shared Dispositive Power 5,347,497 Reporting Person may be deemed to share power to vote and dispose of shares (i) held by Mid Pines with siblings who are also general partners, and (ii) held by Realty with other family members who are shareholders of Realty.0 (c) A schedule of transactions effected in the last sixty days is as follows: On December 31, 1996, Mr. Bainum, Jr. became the beneficial owner of 3,567,869 shares owned by Realty Investment Company ("Realty") as a result of a capital restructuring of the voting shares of Realty. Realty has owned these shares for more than ten years. As a result of the restructuring, Mr. Bainum, Jr. has shared voting authority of Realty and as such is deemed the beneficial owner of all of the shares of the Company held by Realty. On January 28, 1997, Mr. Bainum Jr. exercised options to acquire 375,000 and 90,000 shares of stock of the Company at an exercise price of $4.7827 and $3.6971, respectively. On February 1, 1997, a capital distribution of 2,900,000 shares was made to a family member/partner by Mid Pines Associates, a limited partnership over which Mr. Bainum, Jr. shares voting and disposition control as Managing General Partner. (d) Ownership of more than five percent on behalf of Another Person: To the extent that shares of the issuer identified in Item 5(a) are held by corporations or partnerships, other shareholders and partners, respectively, have the right to receive dividends from, or the proceeds from the sale of the shares to the extent of their proportionate interests in such entities. To the best of the reporting person's knowledge, other than Stewart and Jane Bainum, the reporting person's parents, and Bruce Bainum, Roberta Bainum and Barbara Bainum, CUSIP No. 170-380-10-9 13D Page 5 of 5 the reporting person's siblings, no other person has such interest relating to more than 5% of the outstanding class of securities. (e) Ownership of Less than Five Percent: Not applicable. Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer Not applicable. Item 7. Material to be Filed as Exhibits None Signature After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: February 14, 1997 /s/ Stewart Bainum, Jr. --------------------------------------------- Stewart Bainum, Jr. -----END PRIVACY-ENHANCED MESSAGE-----