Sotherly Hotels Inc. Announces Launch of Offering of Series D Cumulative Redeemable Perpetual Preferred Stock
April 08 2019 - 8:58AM
Sotherly Hotels Inc.
(NASDAQ: SOHO)
(the “Company”) today announced that it has commenced an
underwritten public offering of shares of its Series D Cumulative
Redeemable Perpetual Preferred Stock (the “Series D Preferred
Stock”). The Company expects to grant to the underwriters a 30-day
option to purchase up to an additional 15% of the shares of Series
D Preferred Stock being offered to cover over-allotments, if any.
The Company has filed an application to list the Series D Preferred
Stock on the NASDAQ under the symbol “SOHON.”
The Company intends to contribute 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 7.25% Senior Unsecured Notes due
2021 and, to the extent there are any remaining net proceeds, for
general corporate purposes, including potential future acquisitions
of hotel properties.
Sandler O'Neill + Partners, L.P. is acting as
lead left book-runner for the offering. Janney Montgomery Scott is
acting as passive book-runner. Boenning & Scattergood, Inc. and
American Capital Partners, LLC, are acting as co-managers. The
offering is being conducted as a public offering under the
Company’s and the Operating Partnership’s jointly filed shelf
registration statement on Form S-3 filed with the Securities and
Exchange Commission (“SEC”) (File Nos. 333-220369 and
333-220369-01), which was declared effective by the SEC on
September 20, 2017. The offering is being made only by means
of a preliminary prospectus supplement and accompanying base
prospectus. Copies of the preliminary 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 we believe
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 our 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 our 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 our hotels and the demand for hotel products and
services; risks associated with the hotel industry, including
competition and new supply of hotel rooms, increases in wages,
energy costs and other operating costs; risks associated with
adverse weather conditions, including hurricanes; the availability
and terms of financing and capital and the general volatility of
the securities markets; the Company’s intent to repurchase shares
from time to time; risks associated with the level of our
indebtedness and our ability to meet covenants in our 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 our hotels; risks associated with
maintaining our 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 our current and proposed market areas; risks associated
with our ability to maintain our franchise agreements with our
third party franchisors; our ability to acquire additional
properties and the risk that potential acquisitions may not perform
in accordance with expectations; our 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 our ability to maintain
adequate insurance coverage. These risks and uncertainties are
described in greater detail in our registration statement, under
“Risk Factors” in our Annual Report on Form 10-K and subsequent
reports filed with the SEC. We undertake no obligation to and do
not intend to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. Although we believe our current expectations to be based
upon reasonable assumptions, we can give no assurance that our
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 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, and an interest in
the Hyde Resort & Residences, a luxury condo hotel. Most of the
Company’s properties operate under the Hilton Worldwide, Hyatt
Hotels Corporation, InterContinental Hotels Group and Marriott
International, Inc. 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
StreetWilliamsburg, Virginia 23185 (757) 229-5648
Sotherly Hotels (NASDAQ:SOHO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sotherly Hotels (NASDAQ:SOHO)
Historical Stock Chart
From Apr 2023 to Apr 2024