Summit Hotel Properties to sell at least $60 million of cumulative preferreds talked at 7.25%

By Stephanie N. Rotondo

Phoenix, March 13 - Summit Hotel Properties Inc. has proposed a sale of at least $60 million of series C cumulative redeemable preferred stock, according to a market source.

Price talk is around 7.25%, the source said.

Raymond James & Associates Inc., Baird, RBC Capital Markets LLC, Deutsche Bank Securities Inc., KeyBanc Capital Markets, JMP Securities Inc. and MLV & Co. are the joint bookrunners.

In a prospectus filed Wednesday, the company said dividends would be payable on the last day of February, May, August and November, beginning May 31.

The preferreds become redeemable in 2018 at par plus accrued dividends, or in the event of a change of control.

Summit will apply to list the new preferreds on the New York Stock Exchange under the ticker symbol "INNPC."

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, Texas-based real estate investment trust.

© 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.