WILLIAMSBURG, Va., June 15 /PRNewswire-FirstCall/ -- MHI
Hospitality Corporation (Nasdaq: MDH) announced today that it
has filed a registration statement on Form S-11 with the Securities
and Exchange Commission ("SEC") for the proposed public offering of
up to $125 million of its common
stock. The number of shares to be offered and the price range
for the offering have not yet been determined.
The Company expects to sell its common stock in an underwritten
public offering with Stifel, Nicolaus & Company, Incorporated
and Janney Montgomery Scott LLC acting as joint book-running
managers for the offering. The Company intends to grant the
underwriters a 30-day option to purchase additional shares to cover
over-allotments, if any.
The Company expects to use the net proceeds of the offering to
further strengthen its balance sheet, including repaying
outstanding debt under its credit line, repaying or repurchasing
certain of its mortgage debt, funding working capital, pursuing
acquisition opportunities and for other general corporate
purposes.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state. Any offer or sale will
be made only by means of the written prospectus forming part of the
effective registration statement.
A registration statement relating to these securities has been
filed with the SEC but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior
to the time the registration statement becomes effective.
Prospective investors should read the prospectus in the
registration statement and other documents that the Company has
filed with the SEC for more complete information about the Company
and the offering. Investors may get these documents for free
by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, a copy of the preliminary prospectus related
to the offering may be obtained when available by contacting:
- Stifel, Nicolaus & Company, Incorporated, Attention:
Prospectus Department, One South
Street, 15th Floor, Baltimore,
MD 21202, Telephone: 443-224-1988; or
- Janney Montgomery Scott LLC, Attention: Equity Syndicate
Department, 60 State Street, Boston,
MA 024109, Telephone: 617-557-2971.
About MHI Hospitality Corporation
MHI Hospitality Corporation is a self-managed and
self-administered lodging REIT focused on the acquisition of
upscale to upper upscale full-service hotels in the Mid-Atlantic
and Southern United States.
Currently, the Company's portfolio consists of investments in ten
hotel properties, nine of which are wholly-owned and comprise 2,110
rooms. MHI Hospitality Corporation is headquartered in Williamsburg, Virginia. For more information
please visit www.mhihospitality.com.
Forward-Looking Statements
This news release includes "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934
and Section 27A of the Securities Act of 1933.
Forward-looking statements, which are based on certain
assumptions and describe our current strategies, expectations and
future plans, are generally identified by our use of words, such as
"intend," "plan," "may," "should," "will," "project," "estimate,"
"anticipate," "believe," "expect," "continue," "potential,"
"opportunity," and similar expressions, whether in the negative or
affirmative, but the absence of these words does not necessarily
mean that a statement is not forward-looking. Although the
Company believes that the expectations and assumptions reflected in
the forward-looking statements are reasonable, these statements are
not guarantees of future performance and involve certain risks,
uncertainties and assumptions, which are difficult to predict and
many of which are beyond the Company's control. Therefore, actual
outcomes and results may differ materially from what is expressed,
forecasted or implied in such forward-looking statements. Factors
which could have a material adverse effect on the Company's future
results, performance and achievements, include, but are not limited
to: national and local economic and business conditions, including
the recent economic downturn, that will affect occupancy rates at
the Company's hotels and the demand for hotel products and
services; risks associated with the hotel industry, including
competition, increases in wages, energy costs and other operating
costs; the availability and terms of financing and capital and the
general volatility of the securities markets, specifically, the
impact of the current credit crisis which has severely constrained
the availability of debt financing; risks associated with the level
of the Company's indebtedness, its ability to meet covenants in its
debt agreements and, if necessary, to refinance or seek an
extension of the maturity of such indebtedness; management and
performance of the Company's hotels; risks associated with the
conflicts of interest of the Company's officers and directors;
risks associated with redevelopment and repositioning projects,
including delays and cost overruns; supply and demand for hotel
rooms in the Company's current and proposed market areas; the
Company's ability to acquire additional properties and the risk
that potential acquisitions may not perform in accordance with
expectations; and legislative/regulatory changes, including changes
to laws governing taxation of real estate investment trusts. These
risks and uncertainties are described in greater detail under "Risk
Factors" in the Company's Annual Report on Form 10-K and subsequent
reports filed with the Securities and Exchange Commission. The
Company undertakes no obligation and does not intend to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise. Although the
Company believes its current expectations to be based upon
reasonable assumptions, it can give no assurance that its
expectations will be attained or that actual results will not
differ materially.
SOURCE MHI Hospitality Corporation