CHICAGO, June 2, 2014 /PRNewswire/ -- Strategic Hotels
& Resorts, Inc. (NYSE: BEE) today announced that it
intends to redeem all of the outstanding 3,827,727 shares of its
8.25% Series C Cumulative Redeemable Preferred Stock (NYSE:
BEE-PC) (the "Series C Preferred Shares") on July 3, 2014 (the "Call Date"). The Series
C Preferred Shares will be redeemed at a redemption price of
$25.00 per share, plus accrued and
unpaid dividends from July 1, 2014 up
to and including the Call Date in the amount of $0.01719 per share, for a total redemption cost
of $95,758,973.63. From and
after the Call Date, dividends will cease to accrue and the only
remaining rights of holders of Series C Preferred Shares will be to
receive payment of the redemption price, plus accrued and unpaid
dividends up to and including the Call Date.
The notice of redemption and other materials relating to the
redemption of shares of the Series C Preferred Shares will be
mailed to holders of record of such shares on or about June 3, 2014. As will be specified in the notice
of redemption, payment of the redemption price will be made only
upon presentation and surrender of the certificates representing
the Series C Preferred Shares to the redemption agent,
Computershare Trust Company, N.A. If delivered by mail,
certificates should be sent to 250 Royall Street, Canton, MA 02021, Attn: Corporate Actions.
Questions relating to the notice of redemption of the Series C
Preferred Shares should be directed to Computershare Trust Company,
N.A. at 1-855-396-2084.
Strategic also declared a quarterly cash dividend of
$0.51563 per share of its Series C
Preferred Shares and a cash dividend of $0.51563 per share of its 8.25% Series B
Cumulative Redeemable Preferred Stock ("Series B Preferred
Shares"). The Series C Preferred Share and Series B Preferred Share
dividends are each payable on or about June
30, 2014, to shareholders of record of each of the Series C
Preferred Shares and Series B Preferred Shares, respectively, as of
the close of business on June 16,
2014. In addition, Strategic has declared and set
apart for payment a dividend on the Series B Preferred Shares for
the period from July 1, 2014 up to
and including the Call Date at the rate of $2.0625 per annum (or $0.51563 per quarter), which dividend is expected
to be paid as part of the normal quarterly dividend on the Series B
Preferred Shares on or about September 30,
2014.
About Strategic Hotels & Resorts
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.
For a list of current properties and for further information,
please visit the Company's website at www.strategichotels.com.
Forward-Looking Statements
This press release contains forward-looking statements about
Strategic Hotels & Resorts, Inc. (the "Company"). Except for
historical information, the matters discussed in this press release
are forward-looking statements subject to certain risks and
uncertainties, including statements regarding the redemption of the
Series C Preferred Shares and the payment of dividends. 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 effects of economic conditions
and disruptions 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 the Company's
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 the Company's 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 the Company's 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 Securities and Exchange Commission, including those appearing
under the heading "Item 1A. Risk Factors" in the Company's most
recent annual report on Form 10-K and subsequent quarterly reports
on Form 10-Q. 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.