Summit Hotel Properties, Inc. has announced that it has priced an underwritten public offering of 3,000,000 shares of its 6.45% Series D Cumulative Redeemable Preferred Stock (the “Series D Preferred Stock”) at a public offering price of $25.00 per share, for gross proceeds of $75 million. The offering is expected to close on June 28, 2016, subject to customary closing conditions.
The Company expects to contribute the net proceeds from this offering to its operating partnership. The operating partnership intends to use the net proceeds to reduce the outstanding balance of its senior unsecured revolving credit facility and the balance for other general corporate purposes, which may include, among other things, redeeming the outstanding 9.25% Series A Preferred Stock on or after October 28, 2016, which is generally the date it becomes redeemable by the Company.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Raymond James & Associates Inc., Robert W. Baird & Co. Incorporated and RBC Capital Markets LLC are acting as joint book-running managers for the offering. The senior co-managers for the offering are Canaccord Genuity, Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc. and PNC Capital Markets LLC. BB&T Capital Markets and JMP Securities LLC are acting as co-managers.
A registration statement relating to these preferred shares has been filed with the U.S. Securities and Exchange Commission and is effective. A copy of the final prospectus supplement (when available) and base prospectus relating to the shares may be obtained by contacting Merrill Lynch, Pierce, Fenner and Smith Incorporated, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, Attention: Prospectus Department, email: dg.prospectus_requests@baml.com, telephone: 1-800-294-1322; Raymond James & Associates Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, Attention: Equity Syndicate, email: prospectus@raymondjames.com, telephone: 1-800-248-8863; Robert W. Baird & Co. Incorporated, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, Attention: Syndicate Department, email: syndicate@rwbaird.com, telephone: 1-800-792-2473; or RBC Capital Markets LLC, Three World Financial Center, 200 Vesey Street, 8th Floor, New York, New York 10281, Attention: Prospectus Department, email: rbcnyfixedincomeprospectus@rbccm.com, telephone: 1-866-375-6829.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
