16 June 2014
Diamond Resorts International, Inc. (NYSE: DRII) said that Stephen J. Cloobeck, chairman of the board, and Lowell D. Kraff, vice chairman of the board, through their respective affiliates, have independently established a pre-arranged stock sale plan in accordance with Rule 10b5-1(c) under the Securities Exchange Act of 1934 and the company´s insider trading policy.
The adoption of each plan is intended to provide Cloobeck or Kraff with the ability to sell a portion of company common stock beneficially owned by him in an orderly manner and in a manner that avoids concerns about the timing of the transactions, facilitating his personal financial planning strategies, including asset diversification.
Cloobeck has also advised that he expects to use a portion of the net proceeds from the sales of shares under his plan to repay borrowings under the USD25m revolving loan facility entered into by Cloobeck´s affiliate Cloobeck Diamond Parent, LLC (CDP), which revolving loan facility is currently secured by approximately 8.7m shares of company common stock held by CDP (valued at approximately USD181m based on the closing price of the company´s common stock on June 12, 2014). Any sales under the plans will also result in an increased number of shares in the company´s public float, which may increase liquidity for the company´s stock.
Cloobeck and Kraff informed the company that under their trading plans they intend to sell, respectively, 2,000,000 shares and 540,000 shares of company common stock beneficially owned by them (representing approximately 8.8 percent and 5.7 percent of the shares beneficially owned by Messrs. Cloobeck and Kraff, respectively) at prevailing market prices and subject to certain criteria, including time parameters, minimum price levels and daily volume activity specified in each plan. No sales may take place under either plan prior to September 2014.
Any sales under the plans will be disclosed publicly through appropriate filings with the Securities and Exchange Commission.
Diamond Resorts International provides guests with choices and flexibility as they design their dream vacation, whether they´re traveling an hour away or around the world. To learn more, visit www.DiamondResorts.com.