AUSTIN, Texas, Nov. 2, 2017 /PRNewswire/ -- Summit Hotel
Properties, Inc. (NYSE: INN) (the "Company") announced today that
it has priced an underwritten public offering of 6,400,000 shares
of its 6.25% Series E Cumulative Redeemable Preferred Stock (the
"Series E Preferred Stock") at a public offering price of
$25.00 per share, for gross proceeds
of $160 million. The offering
is expected to close on November 13,
2017, subject to customary closing conditions.
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The Company expects to contribute the net proceeds from this
offering to its operating partnership. The operating
partnership intends to use the net proceeds to redeem the Company's
outstanding 7.875% Series B Cumulative Redeemable Preferred Stock
(the "Series B Preferred Stock") on or after December 11, 2017, which is generally the date
the shares of Series B Preferred Stock become redeemable by the
Company. The Series B Preferred Stock has an aggregate
liquidation preference of approximately $75
million, plus accrued but unpaid dividends payable
therewith. Pending the redemption of the Series B Preferred
Stock, the Company will use the net proceeds from this offering to
reduce amounts outstanding under its senior unsecured revolving
credit facility and for general corporate purposes, which may
include, among other things, acquiring hotel properties in
accordance with its investment strategy. Subject to market
conditions and the approval of its Board of Directors, the Company
may also use any remaining net proceeds to redeem a portion of its
outstanding 7.125% Series C Cumulative Redeemable Preferred Stock
on or after the date it becomes redeemable by the Company in
March 2018.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Robert
W. Baird & Co. Incorporated, Raymond
James & Associates, Inc. and RBC Capital Markets, LLC
are acting as joint book-running managers for the offering.
The senior co-managers for the offering are Deutsche Bank
Securities Inc., Jefferies LLC and KeyBanc Capital Markets
Inc. BB&T Capital Markets, a division of BB&T
Securities, LLC, Capital One Securities, Inc. and U.S. Bancorp
Investments, Inc. are acting as co-managers.
A registration statement relating to the Series E Preferred
Stock has been filed with the U.S. Securities and Exchange
Commission and is effective. A copy of the final prospectus
supplement (when available) and base prospectus relating to the
Series E Preferred Stock may be obtained by contacting Merrill
Lynch, Pierce, Fenner and Smith
Incorporated, Attention: Prospectus Department, 200 North College
Street, 3rd Floor, NC1-004-03-43, Charlotte, NC 28255-0001 or by email at
dg.prospectus_requests@baml.com or by telephone at (800) 294-1322;
by contacting Robert W. Baird & Co. Incorporated, Attention:
Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53202 or by email at
syndicate@rwbaird.com; by contacting Raymond James & Associates, Inc., Attention:
Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716 or by email at
prospectus@raymondjames.com or by telephone at (800) 248-8863; or
by contacting RBC Capital Markets, LLC, Brookfield Place, 200 Vesey Street,
8th Floor, New York, New
York 10281-8098, or by email at
rbcnyfixedincomeprospectus@rbccm.com or by telephone at (866)
375-6829 or by facsimile at (212) 658-6137.
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 or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Summit Hotel Properties
Summit Hotel Properties,
Inc. is a publicly-traded real estate investment trust focused on
owning premium-branded hotels with efficient operating models
primarily in the upscale segment of the lodging industry. As
of November 2, 2017, the Company's
portfolio consisted of 79 hotels with a total of 11,590 guestrooms
located in 24 states.
Forward-Looking Statements
This press release
contains statements that are "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Act of 1934, as amended,
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
generally identifiable by use of forward-looking terminology such
as "may," "will," "should," "potential," "intend," "expect,"
"seek," "anticipate," "estimate," "approximately," "believe,"
"could," "project," "predict," "forecast," "continue," "plan,"
"likely," "would" or other similar words or expressions. For
example, the fact that this offering has priced may imply that this
offering will close, but the closing is subject to conditions
customary in transactions of this type and may be delayed or may
not occur at all. Forward-looking statements are based on
certain assumptions and can include future expectations, future
plans and strategies, financial and operating projections or other
forward-looking information. These forward-looking statements
are subject to various risks and uncertainties, not all of which
are known to the Company and many of which are beyond the Company's
control, which could cause actual results to differ materially from
such statements. These risks and uncertainties include, but
are not limited to, the state of the U.S. economy, supply and
demand in the hotel industry and other factors as are described in
greater detail in the Company's filings with the Securities and
Exchange Commission, including, without limitation, the Company's
Annual Report on Form 10-K for the year ended December 31, 2016. Unless legally required,
the Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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SOURCE Summit Hotel Properties, Inc.