Sotherly Hotels to sell cumulative redeemable preferreds; proceeds to redeem 7% $25-par notes

By Stephanie N. Rotondo

Seattle, Oct. 2 – Sotherly Hotels Inc. intends to price an underwritten public offering of series C cumulative redeemable preferred stock, according to a press release published Monday.

Sandler O’Neill + Partners LP and Janney Montgomery Scott LLC are acting as joint bookrunners.

Dividends will be payable quarterly, the company said in a regulatory filing. The preferreds become redeemable in 2022, or upon a change of control, at par plus accrued dividends.

The new issue is expected to list on the Nasdaq Global Select Market under the ticker symbol “SOHOO.”

Proceeds will be contributed to the operating partnership, Sotherly Hotels LP. The partnership will then use funds to redeem in full the 7% $25-par senior notes due 2019 (Nasdaq: SOHOM). Any remaining proceeds will be used for general corporate purposes, including potential future acquisitions.

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

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