Sotherly Hotels Inc. Announces Senior Note Financing
December 31 2020 - 4:30PM
Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) announced today
that the Company has entered into a Note Purchase Agreement with
affiliates of Kemmons Wilson Hospitality Partners LP and Machine
Investment Group for the issuance of certain notes (collectively,
the “Note”) in an aggregate amount of $20.0 million, with an
additional $10.0 million available to draw within the next twelve
months, at the Company’s option. The Note matures in 3 years and
will be payable on or before the maturity date at the rate of 1.47x
the principal amount borrowed during the initial 3-year term, with
a 1-year extension at Company’s option. The Note also carries a
6.0% current interest rate, payable quarterly during the initial
3-year term. Piper Sandler & Co. acted as Sotherly’s financial
advisor. The Company intends to use the net proceeds from the Note
to enhance its liquidity position.
Dave Folsom, Chief Executive Officer of the
Company, commented, “We are pleased to partner with Kemmons Wilson
in this transaction, which provides liquidity to Sotherly and
enables us to continue to navigate the negative impacts of the
ongoing pandemic. This transaction further positions Sotherly to be
able to focus on the impending recovery, manage its balance sheet
obligations, and preserve its asset base.”
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 to
upper-upscale full-service hotels in the Southern United States.
Currently, the Company’s portfolio consists of investments in
twelve hotel properties, comprising 3,156 rooms, as well as
interests in two condominium hotels and their associated rental
programs. The Company owns hotels that operate under the Hilton
Worldwide, Marriott International, Inc., and Hyatt Hotels
Corporation brands, as well as independent hotels. 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:
Mack
Sims Sotherly Hotels
Inc.306 South Henry Street, Suite 100Williamsburg, Virginia
23185 (757)
229-5648
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