By Stephanie N. Rotondo
Seattle, June 21 – Summit Hotel Properties Inc. priced $75 million of 6.45% series D cumulative redeemable preferred stock at par of $25.00 on Tuesday, the company said in an FWP filing with the Securities and Exchange Commission.
Price talk was 6.5%, according to a market source.
BofA Merrill Lynch, Raymond James & Associates Inc., Baird Capital Inc. and RBC Capital Markets are the joint bookrunners.
Dividends will be payable on the last day of February, May, August and November, beginning Aug. 31. The preferreds become redeemable on or after June 28, 2021 at par plus accrued dividends.
The securities can also be redeemed upon a change of control and subsequent delisting event in whole at par plus accrued dividends.
Upon a change of control, holders will also have an option to convert their preferred shares into common stock.
Proceeds will be contributed to the operating partnership in exchange for series D preferred units. The operating partnership will then use the funds for general corporate purposes, which may include the redemption of the outstanding 9.25% series A cumulative redeemable preferreds (NYSE: INNPA) on or after Oct. 28.
Summit Hotel is an Austin, Texas-based real estate investment trust.
| Issuer: | Summit Hotel Properties Inc.
|
| Securities: | Series D cumulative redeemable preferred stock
|
| Amount: | $75 million, or 3 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Raymond James & Associates Inc., Baird Capital Inc., RBC Capital Markets
|
| Senior co-managers: | Canaccord Genuity Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC
|
| Co-managers: | BB&T Capital Markets, JMP Securities LLC
|
| Dividend: | 6.45%
|
| Price: | Par of $25.00
|
| Yield: | 6.45%
|
| Talk: | 6.5%
|
| Call options: | On or after June 28, 2021 or upon a change of control at par plus accrued dividends
|
| Pricing date: | June 21
|
| Settlement date: | June 28
|
| Expected listing: | NYSE: INNPD
|
| Cusip: | 866082506
|
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