By Stephanie N. Rotondo
Portland, Ore., Sept. 14 - Pebblebrook Hotel Trust brought a $75 million offering of 8% series B cumulative redeemable perpetual preferred stock on Wednesday.
The dividend came in line with price talk. The deal also includes an overallotment option of 400,000 preferreds.
The preferreds are callable starting on Sept. 21, 2016 at par plus accrued distributions, according to an FWP filed 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.
Dividends are payable on the 15th day of January, April, July and October.
Merrill Lynch, Pierce, Fenner & Smith Inc., 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.
Pebblebrook will apply to list the preferreds on the New York Stock Exchange under the ticker symbol "PEBPB."
The hotel investment company is based in Bethesda, Md.
| Issuer: | Pebblebrook Hotel Trust
|
| Securities: | Series B cumulative redeemable perpetual preferred stock
|
| Amount: | $75 million, plus $10 million overallotment option
|
| Dividend: | 8%, payable on the 15th of January, April, July and October
|
| Price: | $25 per share
|
| Redemption: | Optional after Sept. 21, 2016
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| Joint bookrunners: | Merrill Lynch, Pierce, Fenner & Smith Inc., Raymond James & Associates, Inc. and Wells Fargo Securities LLC
|
| Senior co-managers: | Citigroup Global Markets Inc. and RBC Capital Markets LLC
|
| Co-managers: | Robert W. Baird & Co. Inc., Janney Montgomery Scott LLC, Morgan Keegan & Co., Inc. and Stifel Nicolaus & Co., Inc.
|
| Pricing: | Sept. 14
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| Settlement: | Sept. 21
|
| Stock symbol: | NYSE: PEBPB
|
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