By Marisa Wong
Los Angeles, May 7 – Pebblebrook Hotel Trust priced $200 million of 6.375% series G cumulative redeemable perpetual preferred shares on Thursday, according to a Friday press release.
The 8 million shares priced at par of $25.00.
The company has granted the underwriters a 30-day greenshoe to purchase 1.2 million additional shares.
Raymond James & Associates, Inc., Wells Fargo Securities, LLC, BofA Securities, Inc. and BMO Capital Markets Corp. are the joint bookrunners.
The preferreds are callable at par beginning May 13, 2026 or upon a change of control, according to an FWP filing with the Securities and Exchange Commission.
Distributions will be made on Jan. 15, April 15, July 15 and Oct. 15 of each year, beginning Oct. 15, 2021.
The company said it will contribute the net proceeds from the sale to its operating partnership, which will use 50% of the net proceeds to reduce its outstanding debt and the remaining 50% for general corporate purposes, which may include acquiring and investing in hotel properties.
The offering is expected to close on May 13.
The Bethesda, Md.-based real estate investment trust has applied to list the preferreds on the New York Stock Exchange under the symbol “PEBPrG.”
| Issuer: | Pebblebrook Hotel Trust
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| Issue: | Series G cumulative redeemable preferred shares
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| Amount: | $200 million, or 8 million shares
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| Greenshoe: | $30 million, or 1.2 million shares
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| Maturity: | Perpetual
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| Bookrunners: | Raymond James & Associates, Inc., Wells Fargo Securities, LLC, BofA Securities, Inc. and BMO Capital Markets Corp.
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| Senior co-managers: | Truist Securities, Inc., U.S. Bancorp Investments, Inc. and PNC Capital Markets LLC
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| Co-managers: | Stifel, Nicolaus & Co., Inc., BBVA Securities Inc., Capital One Securities, Inc., Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
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| Dividend: | 6.375%
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| Price: | Par of $25.00
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| Yield: | 6.375%
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| Call options: | Beginning May 13, 2026 or upon a change of control at par plus accrued dividends
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| Pricing date: | May 6
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| Settlement date: | May 13
|
| Expected listing: | NYSE: PEBPrG
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| Cusip: | 70509V803
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