CHICAGO, May 27, 2014 /PRNewswire/ --Strategic Hotels
& Resorts, Inc. (the "Company") (NYSE: BEE) today announced
that it is commencing an underwritten public offering of 34,000,000
shares of its common stock (the "Offering"). The Company expects to
grant the underwriters an option to purchase up to 5,100,000
additional shares of common stock to cover over-allotments, if any.
J.P. Morgan, Deutsche Bank Securities, BofA Merrill Lynch, and
Wells Fargo Securities will act as joint book-running managers for
the Offering.
The Company intends to use the net proceeds from the Offering to
fund the acquisition of the 63.6% ownership interest in the Hotel
del Coronado that it does not own from its joint venture partner,
to redeem all of the issued and outstanding shares of its 8.25%
Series C Cumulative Redeemable Preferred Stock, and for general
corporate purposes, including, without limitation, reducing its
borrowings under its bank credit facility, repaying other debt and
funding capital expenditures and working capital.
The offering of the shares will be made under the Company's
effective shelf registration statement filed with the Securities
Exchange Commission (the "SEC"). The Company has filed a prospectus
supplement with the SEC for the common stock offering to which this
communication relates. When available, the prospectus supplement
and accompanying base prospectus, meeting the requirements of
Section 10 of the Securities Act of 1933, may be obtained from J.P.
Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY
11717, or by telephone at 866-803-9204; or from Deutsche Bank
Securities Inc., Attention: Prospectus Group, 60 Wall Street,
New York, NY 10005, or by calling
800-503-4611 or by emailing a request to prospectus.cpdg@db.com; or
from BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus
Department or email dg.prospectus_requests@baml.com; or from Wells
Fargo Securities, Attention: Equity Syndicate Department, 375 Park
Avenue, New York, New York, 10152,
at (800) 326-5897 or email a request to
cmclientsupport@wellsfargo.com; or by visiting the EDGAR database
on the SEC's web site at www.sec.gov.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any shares of the Company's common
stock, nor shall there be any sale of these securities in any
jurisdiction in which such an offer, solicitation, or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The offering may be made
only by means of a prospectus and a related prospectus supplement,
which have been filed with the SEC.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment
trust (REIT) which owns and provides value enhancing asset
management of high-end hotels and resorts in the United States and Europe. The company currently has ownership
interests in 16 properties with an aggregate of 7,862 rooms and
835,000 square feet of multi-purpose meeting and banqueting
space.
This press release contains forward-looking statements about
the Company. Except for historical information, the matters
discussed in this press release, including the Company's intended
use of proceeds, are forward-looking statements subject to certain
risks and uncertainties. Actual results could differ materially
from the Company's projections. Factors that may contribute to
these differences include, but are not limited to the following:
the Company's ability to consummate the Offering of shares of its
common stock; the effects of economic conditions and disruption in
financial markets upon business and leisure travel and the hotel
markets in which the Company invests; the Company's liquidity and
refinancing demands; the Company's ability to obtain, refinance or
extend maturing debt; the Company's ability to maintain compliance
with covenants contained in its debt facilities; stagnation or
deterioration in economic and market conditions, particularly
impacting business and leisure travel spending in the markets where
the Company's hotels operate and in which the Company invests,
including luxury and upper upscale product; general volatility of
the capital markets and the market price of the Company's shares of
common stock; availability of capital; the Company's ability to
dispose of properties in a manner consistent with its investment
strategy and liquidity needs; hostilities and security concerns,
including future terrorist attacks, or the apprehension of
hostilities, in each case that affect travel within or to
the United States, Germany or other countries where the Company
invests; difficulties in identifying properties to acquire and
completing acquisitions; the Company's failure to maintain
effective internal control over financial reporting and disclosure
controls and procedures; risks related to natural disasters;
increases in interest rates and operating costs, including
insurance premiums and real property taxes; delays and
cost-overruns in construction and development; marketing challenges
associated with entering new lines of business or pursuing new
business strategies; the Company's failure to maintain its status
as a REIT; changes in the competitive environment in the Company's
industry and the markets where the Company invests; changes in real
estate and zoning laws or regulations; legislative or regulatory
changes, including changes to laws governing the taxation of REITs;
changes in generally accepted accounting principles, policies and
guidelines; and litigation, judgments or settlements.
Additional risks are discussed in the Company's filings with
the SEC, including those appearing under the heading "Item 1A. Risk
Factors" in the Company's most recent Form 10-K and subsequent Form
10-Qs. Although the Company believes the expectations reflected in
such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
attained. The forward-looking statements are made as of the date of
this press release, and the Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise, except as
required by law.
SOURCE Strategic Hotels & Resorts, Inc.