Supertel to redeem its series A, B preferreds via common stock sale

By Tali David

Minneapolis, July 29 - Supertel Hospitality, Inc. plans to contribute the proceeds of a common stock offering to Supertel LP, which will redeem all of its shares of the series A and series B preferred stock and accrued dividends, according to an S-11 filing with the Securities and Exchange Commission.

Proceeds will also be used to fund the cash portion of the purchase prices of the Acquisition Hotels the company currently has under contract and closing costs, franchise fees, costs related to its assumption of $13.2 million of existing first mortgage debt secured by the two hotels in the CHMK Hotel Portfolio and non-recurring capital expenditures, and for general corporate purposes.

Supertel is a Norfolk, Neb.-based real estate investment trust.

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