Summit Hotel Properties, Inc. Prices Public Offering of 7.125% Series C Preferred Stock
Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today
announced the pricing of an underwritten public offering of 3,000,000
shares of its 7.125% Series C Cumulative Redeemable Preferred Stock
(“Series C Preferred Stock”) at a public offering price of $25.00 per
share. Dividends on the Series C Preferred Stock will be payable
quarterly in arrears on or about the last day of February, May, August
and November of each year, commencing on or about May 31, 2013, at the
rate of 7.125% per annum of the $25.00 liquidation preference, which is
equivalent to $1.78125 per annum per share. The offering is expected to
close on March 20, 2013. The underwriters have a 30-day option to
purchase up to an additional 400,000 shares of Series C Preferred Stock
to cover over-allotments, if any. All the shares are being sold by the
Company.
The Company intends to apply to list the Series C Preferred Stock on the
New York Stock Exchange under the symbol “INNPrC.”
The Company estimates that the net proceeds from this offering, after
deducting underwriting discounts, commissions and estimated offering
expenses, will be approximately $72.4 million (or approximately
$82.1 million if the underwriters’ over-allotment option is exercised in
full). The Company expects to use the net proceeds to reduce the
outstanding balance under its revolving credit facility, and the
balance, if any, for general corporate purposes.
Raymond James, Baird and RBC Capital Markets are acting as joint
book-running managers for the offering. Deutsche Bank Securities and
KeyBanc Capital Markets are acting as senior co-managers for the
offering. JMP Securities and MLV & Co are acting as co-managers for the
offering.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of, or any
solicitation of an offer to buy, 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. The offering is being made solely by means
of the prospectus, including a prospectus supplement, forming part of
the effective shelf registration statement.
A copy of the prospectus supplement and base prospectus relating to the
offering may be obtained by contacting: Raymond James & Associates,
Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, or by calling
toll-free at 1-800-248-8863, or emailing prospectus@raymondjames.com;
Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777
E. Wisconsin Avenue, Milwaukee, WI 53202, or by calling toll-free at
1-800-792-2473, or emailing syndicate@rwbaird.com;
or RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey
Street, 8th Floor, New York, New York 10281, Attention: Prospectus
Department, or by calling toll-free at 1-866-375-6829, or emailing rbcnyfixedincomeprospectus@rbccm.com.
About Summit Hotel Properties, Inc.
Summit Hotel Properties, Inc. is a self-advised real estate investment
trust focused on acquiring and owning premium-branded select-service
hotels in the upscale and upper midscale segments. As of March 13, 2013,
the Company’s hotel portfolio consisted of 91 hotels, containing a total
of 10,309 guestrooms, located in 22 states.
Forward-Looking Statements
This press release contains certain “forward-looking” statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and
other federal securities laws. These forward-looking statements are
based upon the Company’s expectations, but these statements are not
guaranteed to occur. 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. Investors should not place undue reliance upon
forward-looking statements.
