By Stephanie N. Rotondo
Portland, Ore., Oct. 25 - Summit Hotel Properties Inc. priced a $50 million offering of 9.25% series A cumulative redeemable perpetual preferreds, according to an FWP filed with the Securities and Exchange Commission on Tuesday.
The company will sell 2 million of the preferreds and up to 2.3 million if the over-allotment option is fully exercised.
Dividends will be payable on the last day of February, May, August and November, beginning on Nov. 30.
The preferreds can be redeemed in the event of a change of control. Additionally, the preferred shares are optionally redeemable on or after Oct. 28, 2016 at par plus accrued dividends.
Settlement is expected on Oct. 28.
Wells Fargo Securities, LLC, Robert W. Baird & Co. Incorporated, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC are the joint bookrunning managers. KeyBanc Capital Markets Inc. is the co-manager.
Proceeds will be contributed to the company's operating partnership, Summit Hotel OP, LP, which will then use proceeds to pay down Summit Hotel Properties' revolving credit facility and for general corporate purposes.
Summit intends to list the preferreds on the New York Stock Exchange under the symbol "INNPrA."
Summit is a Sioux Falls, S.D.-based real estate investment trust.
| Issuer: | Summit Hotel Properties Inc.
|
| Securities: | Series A cumulative redeemable preferred stock
|
| Amount: | $50 million
|
| Greenshoe: | 750,000 (or 300,000 shares)
|
| Preferreds: | 2 million
|
| Dividend: | 9.25%, payable quarterly
|
| Maturity: | Perpetual
|
| Redemption options: | In the event of a change of control; or optionally on or after Oct. 28, 2016
|
| Joint bookrunners: | Wells Fargo Securities, LLC, Robert W. Baird & Co. Incorporated, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC
|
| Co-manager: | KeyBanc Capital Markets Inc.
|
| Pricing: | Oct. 25, 2011
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| Settlement: | Oct. 28, 2011
|
| Stock symbol: | NYSE: INNPrA
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