Pebblebrook Hotel Trust talks $75 million of cumulative preferreds

By Andrea Heisinger

New York, Sept. 13 - Pebblebrook Hotel Trust announced a $75 million sale of $25-par series B cumulative redeemable preferred stock on Tuesday.

The preferreds are being talked in the 8% area.

The preferreds are callable starting in September 2016 at $25 plus accrued distributions, according to a 424B5 filing with the Securities and Exchange Commission.

There is a change-of-control call option at par if Pebblebrook's common stock and the common securities of the acquiring or surviving entity are not listed on a major exchange, and holders will have the right to convert some or all of their preferred shares into common shares.

Bank of America Merrill Lynch, Raymond James & Associates, Inc. and Wells Fargo Securities LLC are the bookrunners.

The senior co-managers are Citigroup Global Markets Inc. and RBC Capital Markets LLC.

The co-managers are Robert W. Baird & Co. Inc., Janney Montgomery Scott LLC, Morgan Keegan & Co., Inc. and Stifel Nicolaus & Co., Inc.

Proceeds will be contributed to the company's operating partnership, Pebblebrook Hotel, LP, and about $42 million will be used to repay the debt outstanding on the company's senior unsecured credit facility. Any balance will be used for general corporate purposes, which may include acquiring and investing in hotel properties, reducing debt and repurchasing outstanding common shares.

The hotel investment company is based in Bethesda, Md.

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