Sotherly Hotels Inc. Announces Closing of Upsized Offering of Series B Cumulative Redeemable Perpetual Preferred Stock
August 23 2016 - 1:15PM
Sotherly Hotels Inc. (NASDAQ:SOHO) (the “Company”) today
announced it has closed its upsized underwritten public offering of
1,610,000 shares of its 8.0% Series B Cumulative Redeemable
Perpetual Preferred Stock (the “Series B Preferred Stock”) for net
proceeds of approximately $38,125,000 after deducting estimated
offering-related expenses. The Company has granted the underwriters
a 30-day option to purchase up to an additional 15% of the Series B
Preferred Stock to cover over-allotments, if any.
The Company contributed the net proceeds from
the offering to Sotherly Hotels LP, its operating partnership,
which intends to use the net proceeds to redeem in full the
Operating Partnership’s 8.0% Senior Unsecured Notes with the
remaining net proceeds to be used for general corporate
purposes.
Sandler O'Neill + Partners, L.P. and Janney
Montgomery Scott acted as joint book-runners for the offering.
Boenning & Scattergood, Inc. and J.J.B. Hilliard, W.L. Lyons,
LLC acted as co-managers. Copies of the prospectus supplement
and the accompanying base prospectus can be obtained from Sandler
O'Neill + Partners, L.P. at 1251 Avenue of the Americas, 6th Floor,
New York, New York 10020, Attention: Prospectus Department, or by
calling toll-free 1-866-805-4128, or by email at
syndicate@sandleroneill.com.
This press release shall not constitute an offer
to sell or the solicitation of any 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.
This press release includes “forward-looking
statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Although the Company
believes that the expectations and assumptions reflected in the
forward-looking statements are reasonable, these statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions which are difficult to predict and
many of which are beyond the Company’s control.
Therefore, actual outcomes and results may
differ materially from what is expressed, forecasted or implied in
such forward-looking statements. Factors which could have a
material adverse effect on the Company’s future results,
performance and achievements, include, but are not limited to:
national and local economic and business conditions that affect
occupancy rates and revenues at the Company’s hotels and the demand
for hotel products and services; risks associated with the hotel
industry, including competition, increases in wages, energy costs
and other operating costs; the magnitude and sustainability of the
economic recovery in the hospitality industry and in the markets in
which the Company operates; the availability and terms of financing
and capital and the general volatility of the securities markets;
risks associated with the level of the Company’s indebtedness and
its ability to meet covenants in its debt agreements and, if
necessary, to refinance or seek an extension of the maturity of
such indebtedness or modify such debt agreements; management and
performance of the Company’s hotels; risks associated with
maintaining the Company’s system of internal controls; risks
associated with the conflicts of interest of the Company’s officers
and directors; risks associated with redevelopment and
repositioning projects, including delays and cost overruns; supply
and demand for hotel rooms in the Company’s current and proposed
market areas; risks associated with our ability to maintain our
franchise agreements with our third party franchisors; the
Company’s ability to acquire additional properties and the risk
that potential acquisitions may not perform in accordance with
expectations; the Company’s ability to successfully expand into new
markets; legislative/regulatory changes, including changes to laws
governing taxation of REITs; the Company’s ability to maintain its
qualification as a REIT; and the Company’s ability to maintain
adequate insurance coverage. These risks and uncertainties are
described in greater detail in the Company’s registration
statement, under “Risk Factors” in the Company’s Annual Report on
Form 10-K and subsequent reports filed with the SEC. The Company
undertakes no obligation to and does not intend to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. Although the Company
believes its current expectations to be based upon reasonable
assumptions, it can give no assurance that its expectations will be
attained or that actual results will not differ
materially.
About Sotherly
Hotels Inc. Sotherly Hotels Inc. is a self-managed
and self-administered lodging REIT focused on the acquisition,
renovation, upbranding and repositioning of upscale and
upper-upscale full-service hotels in the Southern United
States. Currently, the Company’s portfolio consists of
investments in twelve hotel properties, comprising 3,011 rooms.
Most of the Company’s properties operate under the Hilton
Worldwide, InterContinental Hotels Group and Starwood Hotels and
Resorts brands. Sotherly Hotels Inc. was organized in 2004 and is
headquartered in Williamsburg, Virginia. For more
information, please visit www.sotherlyhotels.com.
Contact at the Company:
Scott Kucinski
Sotherly Hotels Inc.
410 West Francis Street
Williamsburg, Virginia 23185
(757) 229-5648
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