By James McCandless
San Antonio, April 11 – Sotherly Hotels Inc. priced a $27 million offering of $25-par series D cumulative redeemable perpetual preferred stock at par with a dividend of 8.25%, according to an FWP filing with the Securities and Exchange Commission.
There is a $4.05 million greenshoe.
The deal, announced on Monday, matched the initial $27 million offering amount and came in at the low end of talk for a dividend of 8.25% to 8.5%.
Sandler O’Neill & Partners, LP is the lead bookrunner, and Janney Montgomery Scott LLC is the a passive bookrunner.
The preferreds are redeemable on or after April 18, 2024 at par. Prior to that, they are redeemable within 120 days after a change-of-control event.
Sotherly Hotels plans to contribute the net proceeds to its operating partnership in exchange for newly classified series D cumulative redeemable preferred units of limited partnership interest in the operating partnership. Any remaining proceeds will be used for general corporate purposes.
The company plans to list the preferreds on the Nasdaq Global Market under the symbol “SOHON.”
Sotherly Hotels is a Williamsburg, Va.-based real estate investment trust with a focus on full-service hotels.
| Issuer: | Sotherly Hotels Inc.
|
| Description: | Series D cumulative redeemable perpetual preferred stock
|
| Amount: | $27 million, or 1.08 million shares
|
| Greenshoe: | $4.05 million, or 162,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Sandler O’Neill & Partners, LP (active) and Janney Montgomery Scott LLC (passive)
|
| Co-managers: | American Capital Partners, LLC and Boenning & Scattergood, Inc.
|
| Dividend: | 8.25%
|
| Price: | Par of $25.00
|
| Yield: | 8.25%
|
| Call: | On or after April 18, 2024 at par; prior to that, within 120 days after a change-of-control event
|
| Pricing date: | April 11
|
| Settlement date: | April 18
|
| Distribution: | SEC registered
|
| Talk: | 8.25%-8.5%
|
| Listing: | Nasdaq: SOHON
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
