The offering is expected to close onÊNovember 13, 2017, subject to customary closing conditions.
The Company expects to contribute the net proceeds from this offering to its operating partnership.Ê The operating partnership intends to use the net proceeds to redeem the Company’s outstanding 7.875% Series B Cumulative Redeemable Preferred Stock (the ÒSeries B Preferred StockÓ) on or afterÊDecember 11, 2017, which is generally the date the shares of Series B Preferred Stock become redeemable by the Company.Ê The Series B Preferred Stock has an aggregate liquidation preference of approximatelyÊ$75 million, plus accrued but unpaid dividends payable therewith.Ê Pending the redemption of the Series B Preferred Stock, the Company will use the net proceeds from this offering to reduce amounts outstanding under its senior unsecured revolving credit facility and for general corporate purposes, which may include, among other things, acquiring hotel properties in accordance with its investment strategy.Ê Subject to market conditions and the approval of its Board of Directors, the Company may also use any remaining net proceeds to redeem a portion of its outstanding 7.125% Series C Cumulative Redeemable Preferred Stock on or after the date it becomes redeemable by the Company inÊMarch 2018.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Robert W. Baird & Co. Incorporated,ÊRaymond JamesÊ& Associates, Inc. and RBC Capital Markets, LLC are acting as joint book-running managers for the offering.Ê The senior co-managers for the offering are Deutsche Bank Securities Inc., Jefferies LLC and KeyBanc Capital Markets Inc.Ê BB&T Capital Markets, a division of BB&T Securities, LLC, Capital One Securities, Inc. and U.S. Bancorp Investments, Inc. are acting as co-managers.
