By Stephanie N. Rotondo
Phoenix, Dec. 4 - Summit Hotel Properties Inc. priced $67.5 million of 7.875% series B cumulative redeemable perpetual preferred stock, the company said in an FWP filed with the Securities and Exchange Commission on Tuesday.
Dividends will be payable quarterly on the last day of February, May, August and November, beginning on Feb. 28.
The preferreds become redeemable in Dec. 11, 2017 or upon a change of control.
The company will apply to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "INNPB."
Raymond James & Associates Inc., Robert W. Baird & Co. Inc., RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc. are the joint bokrunners.
Proceeds will be contributed to the operating partnership in exchange for series B preferreds units. The operating partnership will use the funds to reduce the outstanding balance on its revolving credit facility and for general corporate purposes.
Summit Hotel Properties is a Sioux Falls, S.D.-based real estate investment trust.
| Issuer: | Summit Hotel Properties Inc.
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $67.5 million, or 2.7 million shares
|
| Greenshoe: | $7.5 million, or 300,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Raymond James & Associates, Inc., Robert W. Baird & Co. Inc., RBC Capital Markets, LLC and Stifel, Nicolaus & Co. Inc.
|
| Senior co-managers: | Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc.
|
| Co-managers: | Janney Montgomery Scott LLC, JMP Securities LLC and MLV & Co. LLC
|
| Dividend: | 7.875%
|
| Talk: | Around 8%
|
| Price: | Par of $25
|
| Yield: | 7.875%
|
| Call options: | On or after Dec. 11, 2017 at par plus accrued dividends or upon a change of control
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 11
|
| Expected symbol: | NYSE: INNPB
|
| Cusip: | 866082 308
|
© 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.
