By James McCandless
San Antonio, Nov. 13 – Braemar Hotels & Resorts, Inc. priced $40 million of $25-par series D cumulative perpetual preferred stock at par with a dividend of 8.25%, according to an FWP filing with the Securities and Exchange Commission.
The deal was announced Tuesday morning.
There is a $6 million greenshoe.
Morgan Stanley & Co. LLC, UBS Securities LLC and Citigroup Global Markets Inc. are the joint bookrunners.
The preferreds are redeemable on or after Nov. 20, 2023 at par plus accrued dividends. Prior to that, they are redeemable within 120 days after a change of control.
Braemar plans to use the proceeds to finance its acquisition of Ritz-Carlton.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “BHRPrD.”
Braemar is a Dallas-based real estate investment trust specializing in luxury hotels and resorts.
| Issuer: | Braemar Hotels & Resorts, Inc.
|
| Description: | Series D cumulative preferred stock
|
| Amount: | $40 million, or 1.6 million shares
|
| Greenshoe: | $6 million, or 240,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC and Citigroup Global Markets Inc.
|
| Co-managers: | B. Riley FBR, Inc., Robert W. Baird & Co. Inc., D.A. Davidson & Co., Deutsche Bank Securities Inc. and Janney Montgomery Scott LLC
|
| Dividend: | 8.25%
|
| Price: | Par of $25.00
|
| Yield: | 8.25%
|
| Call: | On or after Nov. 20, 2023 at par plus accrued dividends; prior to that, within 120 days after a change of control
|
| Pricing date: | Nov. 13
|
| Settlement date: | Nov. 20
|
| Distribution: | SEC registered
|
| Listing: | NYSE: BHRPrD
|
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