Summit Hotel Properties plans sale of series A cumulative preferreds

By Stephanie N. Rotondo

Portland, Ore., Oct. 14 - Summit Hotel Properties Inc. will sell up to $57.5 million of series A cumulative redeemable perpetual preferreds, according to an S-11 filing with the Securities and Exchange Commission on Friday.

Dividends are payable quarterly on the last day of February, May, August and November, with the first dividend being paid out on Nov. 30.

The liquidation preference is $25 per preferred.

The company has the option to redeem the preferreds after an unspecified date in 2016 at par plus accrued dividends. There is also a change-of-control feature that allows holders to convert their preferreds into common equity.

Wells Fargo Securities LLC, Robert W. Baird & Co. Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the bookrunners.

Proceeds will be contributed to the company's operating partnership, Summit Hotel OP, LP, which will then use proceeds to pay down Summit Hotel Properties' revolving credit facility and for general corporate purposes.

Summit intends to list the new issue on the New York Stock Exchange under the ticker symbol "INNPrA."

Summit is a Sioux Falls, S.D.-based real estate investment trust.

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