CHICAGO, Dec. 5, 2014 /PRNewswire/ -- Strategic Hotels
& Resorts, Inc. (NYSE: BEE) today announced that it
intends to redeem all of the outstanding 3,615,375 shares of its
8.25% Series B Cumulative Redeemable Preferred Stock (NYSE:
BEE-PB) (the "Series B Preferred Shares") on January 5, 2015 (the "Call Date"). The
Series B Preferred Shares will be redeemed at a redemption price of
$25.00 per share, plus accrued and
unpaid dividends from January 1, 2015
up to and including the Call Date in the amount of $0.028646 per share, for a total redemption cost
of $90,487,940.43. From and
after the Call Date, dividends will cease to accrue and the only
remaining rights of holders of Series B 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 B Preferred Shares will be
mailed to holders of record of such shares on or about December 5, 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 B 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 B
Preferred Shares should be directed to Computershare Trust Company,
N.A. at 1-855-396-2084.
Strategic Hotels & Resorts, Inc. also announced today that
it declared a quarterly cash dividend of $0.51563 per Series B Preferred Share payable on
December 31, 2014 to shareholders of
record as of the close of business on December 15, 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 7,865 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
http://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 B 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 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; contagious disease
outbreaks; 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 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.
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SOURCE Strategic Hotels & Resorts, Inc.