LuxUrban plans $10 million-$15 million preferreds, eyes 12% dividend

By Wendy Van Sickle

Columbus, Ohio, Oct. 16 – LuxUrban Hotels Inc. plans to price a $10 million to $15 million offering series A cumulative redeemable preferred stock this week, according to an FWP filing with the Securities and Exchange Commission.

The expected dividend is in the 12% area.

The 400,000 to 600,000 shares will be sold at $25.00 per share and will be redeemable at $26.00 per share until the third anniversary of issuance, after which they will be redeemable at $25.50 a share.

Upon a change-of-control or a delisting event, the preferreds will be redeemable at par, and, if a delisting event occurs, the initial rate will increase by 600 basis points until a re-listing event occurs.

Alexander Capital LP is the bookrunning manager.

LuxUrban has applied to list the preferreds on the Nasdaq Capital Market under the symbol “LUXHP.”

The company said it may use proceeds of the offering to lease additional accommodation units and for general corporate purposes.

Hunton Andrews Kurth LLP is advising the issuer. Loeb & Loeb LLP is advising the underwriters.

Based in Miami, LuxUrban acquires and manages a portfolio of short-term rental properties in major metropolitan cities.

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