Published on 8/5/2021 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Summit Hotel prices $100 million 5.875% series F cumulative redeemable preferred stock
By Wendy Van Sickle
Columbus, Ohio, Aug. 5 – Summit Hotel Properties Inc. priced $100 million, or 4 million shares, of 5.875% series F $25-par cumulative redeemable perpetual preferred stock, according to a news release.
There is a $15 million over-allotment option.
Dividends will be paid quarterly.
The stock can be redeemed after August 2026, or due to a change of control.
Wells Fargo Securities, LLC, Raymond James & Associates, Inc., BofA Securities, Inc. and Deutsche Bank Securities Inc. are underwriting the offer.
It is expected the preferreds will be listed on the New York Stock Exchange under the symbol “INNPrF.”
The REIT intends to use the proceeds to redeem its $75 million series D preferred stock. The remaining proceeds will be used to reduce the company’s outstanding debt under its $400 million revolver, term loans and for other general corporate purposes.
Summit Hotel is an Austin, Tex.-based hotel real estate investment trust.
| Issuer: | Summit Hotel Properties Inc.
|
| Amount: | $100 million, or 4 million shares
|
| Greenshoe: | $15 million, or 600,000 shares
|
| Description: | Cumulative redeemable preferred stock, series F
|
| Maturity: | Perpetual
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| Bookrunners: | Wells Fargo Securities, LLC, Raymond James & Associates, Inc., BofA Securities, Inc. and Deutsche Bank Securities Inc.
|
| Senior co-managers: | Robert W. Baird & Co. Inc., BMO Capital Markets Corp. and KeyBanc Capital Markets Inc.
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| Co-managers: | Capital One Securities, Inc., PNC Capital Markets LLC, Regions Securities LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Bancroft Capital, LLC
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| Dividend: | 5.875%
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| Price: | Par of $25.00
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| Trade date: | Aug. 5
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| Settlement date: | Aug. 12
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| Symbol: | NYSE: “INNPrF”
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| Distribution: | SEC registered
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