Nashville, Aug. 19 - FelCor Lodging Trust Inc. sold an add-on $50 million of its series A 7.8% perpetual convertible preferreds at $23.94, a discount to the par $25, to yield 8.375%.
Bear Stearns & Co. Inc. and Citigroup Global Markets Inc. were joint bookrunners on the deal.
The issue was sold at the wide end of price talk for a yield of 8.25% to 8.375%.
Dividend payments will be the greater of 7.8% per year or the cash distributions on the underlying shares.
The Irving, Texas, hotel real estate investment trust said proceeds would be used for general corporate purposes, including investments in existing or additional hotel assets, retirement of debt and additional liquidity.
Terms of the deal are:
| Issuer: | FelCor Lodging Trust Inc.
|
| Issue: | Series A 7.8% perpetual convertible preferreds
|
| Bookrunners: | Bear Stearns & Co. Inc. and Citigroup Global Markets Inc.
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| Amount: | $50 million
|
| Greenshoe: | $7.5 million
|
| Maturity: | Perpetual
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| Dividend: | 7.8%
|
| Price: | $23.94 (par, $25)
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| Yield: | 8.375%
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| Conversion premium: | Not meaningful
|
| Conversion price: | $32.25
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| Conversion ratio: | 0.7752
|
| Call: | Non-callable unless shares above $32.25
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| Ratings: | Moody's: B3
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| S&P: CCC+
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| Price talk: | 8.25%-8.375%
|
| Pricing date: | Aug. 18, after the close
|
| Settlement date: | Aug. 23
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| Distribution: | Registered
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