Summit Hotel talks $200 million five-year convertibles to yield 1.5%-2%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., Jan. 6 – Summit Hotel Properties Inc. plans to price $200 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 1.5% to 2% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

BofA Securities Inc. and Deutsche Bank Securities Inc. are joint bookrunners for the registered offering, which carries a greenshoe of $30 million.

The notes are non-callable until Feb. 20, 2024 and then subject to a 130% hurdle.

They are putable upon a fundamental change. There is dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

In connection with the pricing of the notes, the company will enter into capped call transactions.

Summit Hotel Properties is an Austin, Tex.-based Real Estate Investment Trust focused on hotels for middle and upscale markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.