By Wendy Van Sickle
Columbus, Ohio, Dec. 31 – Sotherly Hotels Inc. entered into a note purchase agreement with affiliates of Kemmons Wilson Hospitality Partners LP and Machine Investment Group to issue $20 million of 6% three-year notes, according to a news release.
An additional $10 million will be available to draw within the next 12 months, at the company’s option.
The notes will be payable on or before the maturity date at the rate of 1.47 times the principal amount borrowed during the initial three-year term, with a one-year extension at the company’s option.
The company intends to use the net proceeds to enhance its liquidity position.
Sotherly is a Williamsburg, Va.-based real estate investment trust.
| Issuer: | Sotherly Hotels Inc.
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| Securities: | Notes
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| Amount: | $20 million
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| Tenor: | Three years
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| Coupon: | 6%
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| Investors: | Affiliates of Kemmons Wilson Hospitality Partners LP and Machine Investment Group
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| Announcement date: | Dec. 31
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| Distribution: | Private placement
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