By Stephanie N. Rotondo
Seattle, Aug. 17 – Sotherly Hotels Inc. priced $40.25 million of 8% series B cumulative redeemable perpetual preferred stock, according to an FWP filed with the Securities and Exchange Commission on Wednesday.
The deal includes a $6,037,000 over-allotment option.
Sandler O’Neill + Partners LP and Janney Montgomery Scott LLC are the bookrunners.
Dividends will be payable on the 15th day of January, April, July and October, beginning Oct. 15. The preferreds become redeemable on or after Aug. 23, 2021 at par plus accrued dividends.
There is also a change-of-control feature.
The Williamsburg, Va.-based real estate investment trust will contribute proceeds to the operating partnership in exchange for series B preferred partnership units. The operating partnership will then use the funds to redeem in full or in part the outstanding 8% senior unsecured notes due 2018, which become callable on or after Sept. 30.
| Issuer: | Sotherly Hotels Inc.
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $40.25 million, or 1.61 million shares
|
| Greenshoe: | $6,037,000, or 241,500 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Sandler O’Neill + Partners LP, Janney Montgomery Scott LLC
|
| Co-managers: | Boenning & Scattergood Inc., J.J.B. Hilliard, W.L. Lyons, LLC
|
| Dividend: | 8%
|
| Price: | Par of $25.00
|
| Yield: | 8%
|
| Call options: | On or after Aug. 23, 2021 or upon a change of control at par plus accrued dividends
|
| Pricing date: | Aug. 16
|
| Settlement date: | Aug. 23
|
| Expected listing: | Nasdaq: SOHOB
|
| Cusip: | 83600C301
|
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