New York, Dec. 28 - Supertel Hospitality, Inc. priced its offering of up to $25 million of series A convertible preferred stock with an 8% dividend and a $5.66 conversion price.
The conversion price is a 22.25% premium over the $4.63 stock close on Dec. 27.
The securities are being sold on a best-efforts basis via agent Anderson & Strudwick Inc. The offering ends on Jan. 27.
The Securities and Exchange Commission-registered deal has a minimum size of $12 million.
Supertel will sell up to 2.5 million shares of the $10 liquidation preference perpetual preferreds, according to a 424B3 filing with the SEC.
From 2009 onwards, the preferreds will be callable at $10.80, declining to $10.40 in 2010 and par in 2011.
The conversion rights can be cancelled if the company's stock trades above $7.36 for 20 out of 30 trading days.
Supertel will apply to list the preferreds on the Nasdaq National Market.
Supertel, a Norfolk, Neb., real estate investment trust, will use proceeds to repay borrowings on its revolving credit facility.
| Issuer: | Supertel Hospitality, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $12 million minimum, $25 million maximum
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| Maturity: | Perpetual
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| Dividend: | 8%
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| Price: | Par of $10
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| Conversion premium: | 22.25% over $4.63 close on Dec. 27
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| Conversion price: | $5.66
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| Conversion ratio: | 1.77
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| Call: | Jan. 1, 2009 onwards at $10.80, declining to $10.40, then $10.00 from Jan. 1, 2011 onwards
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| Agent: | Anderson & Strudwick Inc.
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| Pricing date: | Dec. 27
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| Distribution: | SEC registered
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