By Stephanie N. Rotondo
Portland, Ore., July 12 - Pebblebrook Hotel Trust sold an additional $15 million of 7.875% series A cumulative redeemable preferred shares of beneficial interest to a single institutional investor, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.
The 600,000 preferreds are being sold at $25.25 each for a total price of $15.15 million. The price is a premium compared to Monday's closing price of $25.19.
Before the offering, there were 5 million of the preferreds outstanding. Upon the completion of the sale, there will be 5.6 million.
The preferreds were originally issued on March 8.
The liquidation preference is $25.00 per preferred.
Dividends are payable quarterly on the 15th of January, April, July and October. There is no maturity date.
The preferreds are not redeemable until March 11, 2016. After that date, the company can choose to redeem them at par plus accrued dividends.
Pebblebrook can also elect to redeem the preferreds in the event of a change of control.
Proceeds will be put toward the real estate investment trust's operating partnership, which will then use the proceeds for general corporate purposes, which may include acquiring and investing in hotel properties and reducing debt.
The preferreds are listed on the New York Stock Exchange under the symbol "PEBPRA."
Pebblebrook is based in Bethesda, Md.
| Issuer: | Pebblebrook Hotel Trust
|
| Issue: | Series A cumulative redeemable preferred shares of beneficial interest
|
| Amount: | $15 million
|
| Proceeds: | $15.15 million
|
| Shares: | 600,000
|
| Liquidation preference: | $25.00
|
| Price: | $25.25
|
| Dividends: | 7.875%
|
| Call option: | After March 11, 2016 or upon a change of control
|
| Listing: | NYSE: PEBPRA
|
| Pricing date: | July 11
|
| Settlement date: | July 14
|
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