Chicago, Oct. 24 – LuxUrban Hotels Inc. priced a $7 million offering of $25-par series A cumulative redeemable preferred stock, according to a press release.
The company had been aiming for a $10 million to $15 million offering size.
The 13% dividend came higher than expectations for a dividend in the 12% area.
The shares will be redeemable at $26.00 per share until the third anniversary of issuance, after which they will be redeemable at $25.50 a share, according to an earlier filing with the Securities and Exchange Commission.
The underwriter has a 45-day greenshoe option for an additional 42,000 shares.
Alexander Capital LP is the bookrunner.
Proceeds will be used for near-term acquisitions and general working capital purposes.
LuxUrban has applied to list the preferreds on the Nasdaq Capital Market under the symbol “LUXHP.”
The company has a $50 million shelf to sell preferred stock, leaving $42 million potentially available to the company following closing of the offering.
Based in Miami, LuxUrban acquires and manages a portfolio of short-term rental properties in major metropolitan cities.
| Issuer: | LuxUrban Hotels Inc.
|
| Amount: | $7 million, or 280,000 shares
|
| Greenshoe: | 42,000 shares
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| Issue: | Series A cumulative redeemable preferred stock
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| Bookrunner: | Alexander Capital LP
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| Counsel to issuer: | Hunton Andrews Kurth LLP
|
| Counsel to underwriter: | Loeb & Loeb LLP
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| Dividend: | 13%
|
| Price: | Par of $25.00
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| Yield: | 13%
|
| Call features: | At $26.00 per share until third anniversary, thereafter at $25.50 per share
|
| Change of control: | At par
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| Trade date: | Oct. 24
|
| Settlement date: | Oct. 26
|
| Distribution: | SEC registered
|
| Price talk: | 12% area
|
| Listing: | Nasdaq: LUXHP
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