By Stephanie N. Rotondo
Phoenix, Sept. 25 - Sotherly Hotels Inc. sold a $24 million offering of 8% $25-par senior notes due Sept. 30, 2018 at par on Wednesday, the company said in a prospectus filed with the Securities and Exchange Commission.
The notes were issued via the company's operating partnership, Sotherly Hotels LP.
Sandler O'Neil + Partners LP was the bookrunning manager.
Interest will be paid on the 30th day of March, June, September and December, beginning Dec. 30. The notes become redeemable on or after Sept. 30, 2016 at 101% of par plus accrued interest. The company can also call the notes in the event of a change of control at 102% of par plus accrued interest.
The new securities will list on the Nasdaq under the ticker symbol "SOHOL."
Proceeds will be used to redeem all outstanding 12% series A cumulative redeemable preferred stock and for general corporate purposes.
Sotherly is a Williamsburg, Va.-based real estate investment trust.
| Issuer: | Sotherly Hotels LP
|
| Securities: | Senior notes
|
| Amount: | $24 million
|
| Greenshoe: | $3.6 million
|
| Maturity: | Sept. 30, 2018
|
| Bookrunner: | Sandler O'Neil + Partners LP
|
| Co-managers: | Boenning & Scattergood, Inc., J.J.B. Hilliard, W.L. Lyons, LLC, Incapital LLC, Ladenburg Thalmann & Co. Inc.
|
| Coupon: | 8%
|
| Price: | Par of $25
|
| Yield: | 8%
|
| Call options: | On or after Sept. 30, 2016 at 101% of par plus accrued interest or in the event of a change of control at 102% of par plus interest
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Expected listing: | Nasdaq: SOHOL
|
| Cusip: | 83600E208
|
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