Sotherly launches $25-par senior notes due 2026, adds bookrunner

By Marisa Wong

Los Angeles, Sept. 20 – Sotherly Hotels Inc. operating partnership Sotherly Hotels LP has begun an underwritten public offering of $25-par senior notes due 2026, according to a press release and an amended Form S-11 filed with the Securities and Exchange Commission.

The notes will be guaranteed by Sotherly Hotels Inc.

Piper Sandler & Co. and Janney Montgomery Scott LLC are the joint bookrunners. A previous prospectus filed with the SEC had only listed Piper Sandler as bookrunner.

The offering will include a 30-day greenshoe for up to an additional 15% of notes.

The company intends to use proceeds to repay $20 million of its 6% secured notes due Dec. 30, 2023, plus accrued interest and any make-whole amounts due, which is estimated to be $9.7 million. Proceeds will also be used to fund the deposit of one year of interest payments into a reserve account from which the first four quarterly payments on the notes will be paid. Remaining proceeds, if any, will be used for general corporate purposes.

The company has applied to list the notes on the Nasdaq Global Market under the symbol “SOHOL.”

Sotherly is a Williamsburg, Va.-based lodging real estate investment trust focused on upscale to upper-upscale full-service hotels in the Southern United States.

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