LaSalle Hotel Properties Announces Public Offering of 6.375% Series I Cumulative Redeemable Preferred Shares
February 27 2013 - 4:31PM
Business Wire
LaSalle Hotel Properties (NYSE:LHO) today announced that it has
priced an underwritten public offering of 4,000,000 6.375% Series I
Cumulative Redeemable Preferred Shares at a price of $25.00 per
share for gross proceeds of $100 million. The Company granted the
underwriters a 30-day option to purchase up to an additional
600,000 Series I Preferred Shares to cover over-allotments, if any.
The offering is expected to close on March 4, 2013, subject to
customary closing conditions.
Wells Fargo Securities, BofA Merrill Lynch and Citigroup are
acting as joint book-running managers for the offering, RBC Capital
Markets is acting as lead manager, Barclays, BMO Capital Markets,
Deutsche Bank Securities and Raymond James are acting as senior
co-managers, and Baird, MLV & Co and US Bancorp are acting as
co-managers.
The Company intends to use the net proceeds from this offering
for one or more of the following purposes: to redeem a portion of
its outstanding Series G Preferred Shares, to reduce amounts
outstanding under its senior unsecured credit facility, and for
acquisitions, working capital and other general corporate
purposes.
A registration statement relating to the securities became
effective upon filing with the Securities and Exchange Commission.
The offering will be made only by means of a preliminary prospectus
supplement and accompanying prospectus forming part of the
registration statement. Copies of the preliminary prospectus
supplement, final prospectus supplement (when available) and
prospectus relating to these securities may be obtained by
contacting (a) Wells Fargo Securities, LLC, 1525 West W.T. Harris
Blvd., NC0675, Charlotte, North Carolina 28262, Attention: Capital
Markets Support, email: cmclientsupport@wellsfargo.com, or by
calling toll-free at 1-800-326-5897; (b) Merrill Lynch, Pierce,
Fenner & Smith Incorporated, 222 Broadway, 7th Floor, New York,
New York 10038, Attn: Prospectus Department; email:
dg.prospectus_requests@baml.com; (c) Citigroup Global Markets Inc.,
c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, or by calling 1-800-831-9146; or (d) the
Internet site of the Securities and Exchange Commission at
http://www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any state.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 40 hotels and a mezzanine loan
secured by two hotels in Santa Monica, CA. The properties are
upscale full-service hotels, totaling over 10,600 guest rooms in 13
markets in nine states and the District of Columbia. The Company
focuses on owning, redeveloping and repositioning upscale and
luxury, full-service hotels located in convention, resort and major
urban business markets. LaSalle Hotel Properties seeks to grow
through strategic relationships with premier lodging companies,
including Westin Hotels and Resorts, Hilton Hotels Corporation,
Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt
Hotels Corporation, Benchmark Hospitality, White Lodging Services
Corporation, Thompson Hotels, Davidson Hotel Company, Denihan
Hospitality Group, the Kimpton Hotel & Restaurant Group, LLC,
Accor, Destination Hotels & Resorts, HEI Hotels & Resorts,
JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate Hotels and
Access Hotels & Resorts.
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
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. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words
“will,” "believe," "expect," "intend," "anticipate," "estimate,"
"project" or similar expressions. Forward-looking statements in
this press release include, among others, statements about the use
of proceeds from the offering. You should not rely on
forward-looking statements since they involve known and unknown
risks, uncertainties and other factors that are, in some cases,
beyond the Company's control and which could materially affect
actual results, performances or achievements. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to, (i) the Company’s dependence on
third-party managers of its hotels, including its inability to
implement strategic business decisions directly, (ii) risks
associated with the hotel industry, including competition,
increases in wages, energy costs and other operating costs, actual
or threatened terrorist attacks, downturns in general and local
economic conditions and cancellation of or delays in the completion
of anticipated demand generators, (iii) the availability and terms
of financing and capital and the general volatility of securities
markets, (iv) risks associated with the real estate industry,
including environmental contamination and costs of complying with
the Americans with Disabilities Act and similar laws, (v) interest
rate increases, (vi) the possible failure of the Company to qualify
as a REIT and the risk of changes in laws affecting REITs, (vii)
the possibility of uninsured losses, (viii) risks associated with
redevelopment and repositioning projects, including delays and cost
overruns and (ix) the risk factors discussed in the Company’s
Annual Report on Form 10-K. Accordingly, there is no assurance that
the Company's expectations will be realized. Except as otherwise
required by the federal securities laws, the Company disclaims any
obligation or undertaking to publicly release any updates or
revisions to any forward-looking statement contained herein (or
elsewhere) to reflect any change in the Company’s expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statement is based.
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