Summit Hotel greenshoe exercise lifts 7.125% preferreds to $85 million

By Toni Weeks

San Luis Obispo, Calif., March 19 - Underwriters for Summit Hotel Properties Inc.'s offering of 7.125% series C cumulative redeemable preferred stock exercised their over-allotment option in full, lifting the total proceeds to $85 million, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The deal priced for $75 million with a $10 million greenshoe on March 13.

Raymond James & Associates Inc., Robert W. Baird & Co. Inc. and RBC Capital Markets LLC are the joint bookrunners.

Settlement is expected Wednesday.

Proceeds will be contributed to the company's 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.

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