Pebblebrook greenshoe ups 6.375% perpetual preferreds to $230 million

By Wendy Van Sickle

Columbus, Ohio, May 13 – Underwriters for Pebblebrook Hotel Trust’s 6.375% series G cumulative redeemable perpetual preferred shares fully exercised their greenshoe for an additional $30 million, or 1.2 million shares, according to a news release.

The company priced $200 million, or 8 million shares, of the perpetual preferreds at par of $25.00 on May 6, as previously reported.

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.

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.”

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