By Stephanie N. Rotondo
Phoenix, March 13 - Summit Hotel Properties Inc. priced $75 million of 7.125% series C cumulative redeemable preferred stock, according to an FWP filed with the Securities and Exchange Commission on Wednesday.
Raymond James & Associates Inc., Baird and RBC Capital Markets LLC are the joint bookrunners.
Dividends will be payable on the last day of February, May, August and November, beginning May 31.
The preferreds become redeemable on or after March 20, 2018 at par plus accrued dividends or in the event of a change of control.
Proceeds will be contributed to the operating partnership in exchange for series C preferred units. The operating partnership will then use the funds to reduce an outstanding balance on a revolving credit facility and for general corporate purposes.
Summit Hotel is an Austin-based real estate investment trust.
| Issuer: | Summit Hotel Properties Inc.
|
| Securities: | Series C cumulative redeemable preferred stock
|
| Amount: | $75 million, or 3 million shares
|
| Greenshoe: | $10 million, or 400,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Raymond James & Associates Inc., Baird, RBC Capital Markets LLC
|
| Senior co-managers: | Deutsche Bank Securities Inc., KeyBanc Capital Markets
|
| Co-managers: | JMP Securities Inc., MLV & Co.
|
| Dividend: | 7.125%
|
| Price: | Par of $25.00
|
| Yield: | 7.125%
|
| Talk: | Around 7.25%
|
| Call options: | On or after March 20, 2018 at par plus accrued dividends or in the event of a change of control
|
| Pricing date: | March 13
|
| Settlement date: | March 20
|
| Expected listing: | NYSE: INNPC
|
| Cusip: | 866082407
|
© 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.
