Sotherly Hotels greenshoe lifts 8% notes due 2018 to $27.6 million

By Susanna Moon

Chicago, Sept. 30 - Sotherly Hotels Inc. underwriters fully exercised the greenshoe on its offering of 8% senior notes due Sept. 30, 2018, bringing the total deal size to $27.6 million.

Proceeds were used to redeem all of the outstanding shares of the company's 12% series A cumulative redeemable preferred stock for a price of about $11 million, including accrued dividends and make-whole premium, according to a press release.

As previously announced, the company priced $24 million of the $25-par notes at par on Sept. 25.

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."

Sotherly is a Williamsburg, Va.-based real estate investment trust.

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