Insider filing report for Changes in Beneficial Ownership
- Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
- Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
- Peter Lynch
What is insider trading>>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 8)*
CHOICE HOTELS INTERNATIONAL, INC.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
169905-10-6
(CUSIP Number)
Christine A. Shreve – 240-295-1600
8171 Maple Lawn Blvd, Suite 375, Fulton, MD 20759
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
January 17, 2020
(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).
13D
| CUSIP No. 169905-10-6 | Page 2 of 5 |
| 1 | Name of Reporting Person
Bruce D. Bainum (“Dr. Bainum” or the “Reporting Person”) | |||||
| 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
1,900,833 | ||||
| 8 | Shared Voting Power
9,033,049 | |||||
| 9 | Sole Dispositive Power
1,900,833 | |||||
| 10 | Shared Dispositive Power
9,033,049 | |||||
| 11 |
Aggregate Amount Beneficially Owned by Each Reporting Person
10,933,882 | |||||
| 12 | Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
| |||||
| 13 | Percent of Class Represented by Amount in Row (11)
19.63% | |||||
| 14 | Type of Reporting Person
IN | |||||
13D
| CUSIP No. 169905-10-6 | 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: |
| 1 Choice Circle, Suite 400 |
| Rockville, MD 20850 |
| (c) | Title and Class of Securities: |
| Common Stock |
Item 2. Identity and Background
| (a) | Name: |
| Bruce D. Bainum |
| (b) | Business Address: |
| 8171 Maple Lawn Blvd, Suite 375 |
| Fulton, MD 20759 |
| (c) | Present Principal Employment: |
| Investor; Chair – Three Graces Foundation, Inc. |
| (d) | Record of Convictions: |
| During the last five years, the Reporting Person has not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors.) |
| (e) | Record of Civil Proceedings: |
| During the last five years, the Reporting Person 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: |
| N/A |
Item 3. Source and Amount of Funds or Other Consideration
N/A
Item 4. Purpose of Transaction
On January 17, 2020 and January 21, 2020, family entities for which Dr. Bainum has voting authority engaged in transactions in respect of shares owned by those entities as part of tax and estate planning for members of Dr. Bainum’s family. The transfers involved no consideration.
On January 17, 2020 the Jane Bainum Declaration of Trust, a trust for the benefit of Dr. Bainum’s mother, made gifts of shares of common stock of the Issuer to five tax exempt organizations created by Dr. Bainum, his siblings and family members. Dr. Bainum is a Director and has sole voting authority for Charis Advocacy Fund which is one of the exempt organizations which received 281,818 of the shares gifted by the Jane Bainum Declaration of Trust.
On January 21, 2020, Posadas Holdings, LLC, a family owned company in which Dr. Bainum owns a majority interest and shares voting authority, made distributions of 452,068 shares of common stock of the Issuer to four of its members in redemption of the interests in the LLC. The redeeming members included two of Dr. Bainum’s adult children and two trusts for the benefit of Dr. Bainum’s descendants.
13D
| CUSIP No. 169905-10-6 | Page 4 of 5 |
Item 5. Interest in Securities of the Issuer
| (a) | Amount and percentage beneficially owned: |
| Reporting Person: |
| 10,933,882 shares (19.63%) including 1,393,067 shares owned by the Bruce Bainum Declaration of Trust of which Dr. Bainum is the sole trustee and beneficiary. Also includes 1,232,993 shares owned by Posadas Holdings, LLC, a private company for which he shares voting authority and whose sole members are Dr. Bainum and a trust for his benefit; 978,482 shares owned by Mid Pines Limited Partnership, in which Dr. Bainum’s trust is a general partner and has shared voting authority; 6,821,574 shares owned by Realty Investment Company, Inc., a private company in which Dr. Bainum’s trust owns voting stock and has shared voting authority; 219,353 shares owned by Three Graces Foundation, Inc., a private foundation for which Dr. Bainum is a Director and has sole voting authority; 281,818 shares owned by Charis Advocacy Fund, a tax exempt organization for which Dr. Bainum is a Director and has sole voting authority; and 6,595 shares owned by trusts for the benefit of Dr. Bainum’s descendants for which Dr. Bainum is the sole trustee. |
| (b) | Number of shares as to which such person has: |
| (i) | Sole Voting Power 1,900,833 |
| (ii) | Shared Voting Power 9,033,049 |
| (iii) | Sole Dispositive Power 1,900,833 |
| (iv) | Shared Dispositive Power 9,033,049 |
| (c) | A schedule of transactions effected in the last sixty days is as follows: |
| Other than the tax and estate planning transactions described in Item 4 above, Dr. Bainum engaged in no other transactions in the last 60 days. |
| (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 Bainum, Jr., Bruce Bainum, Roberta Bainum and Barbara Bainum, no other person has such interest relating to more than 5% of the outstanding class of securities. |
| (e) | Ownership of Less than Five Percent: |
| N/A |
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
None
Item 7. Material to be Filed as Exhibits
None
13D
| CUSIP No. 169905-10-6 | Page 5 of 5 |
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: January 23, 2020
| /s/ Bruce D. Bainum | ||
| Bruce D. Bainum | ||
| BY: | /s/ Christine A. Shreve | |
| Christine A. Shreve, Attorney-in-fact | ||