LaSalle Hotel Properties (NYSE: LHO) today announced that it has
priced an underwritten public offering of 6,000,000 6.3% Series J
Cumulative Redeemable Preferred Shares at a price of $25.00 per
share for gross proceeds of $150 million. The offering is expected
to close on May 25, 2016, subject to customary closing
conditions.
Wells Fargo Securities and BofA Merrill Lynch are acting as
joint book-running managers for the offering; Citigroup and RBC
Capital Markets are acting as senior co-managers; BBVA, PNC Capital
Markets LLC, and US Bancorp are acting as co-managers; and Baird,
SMBC Nikko, and TD Securities are acting as junior co-managers.
The Company intends to use the net proceeds from this offering
to reduce amounts outstanding under its senior unsecured credit
facility, and for 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 prospectus supplement
and accompanying prospectus forming part of the registration
statement. Copies of the final prospectus supplement (when
available) and prospectus relating to these securities may be
obtained by contacting (a) Wells Fargo Securities, LLC, 608 2nd
Avenue South, Suite 1000, Minneapolis, MN 55402, Attention: WFS
Customer Service (telephone: 1-800-645-3751 or email:
wfscustomerservice@wellsfargo.com); (b) Merrill Lynch, Pierce,
Fenner & Smith Incorporated, 222 Broadway, New York, NY 10038
(telephone: 1-800-294-1322 or email:
dg.prospectus_requests@baml.com); or (c) 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.
About LaSalle Hotel Properties
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 47 hotels and a mezzanine loan
secured by two hotels in Santa Monica, California. The properties
are upscale, full-service hotels, totaling more than 12,000 guest
rooms in 14 markets in 10 states and the District of Columbia. The
Company focuses on owning, redeveloping and repositioning upscale,
full-service hotels located in urban, resort and convention
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, Commune Hotels and Resorts, Destination Hotels,
Davidson Hotel Company, Kimpton Hotel & Restaurant Group, LLC,
Accor, 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," “may,” “plan,” “seek,” “should,” or similar expressions.
Forward-looking statements in this press release include, among
others, statements about the expected closing of the offering and
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) risks associated with the
hotel industry, including competition for guests and meetings from
other hotels and alternative lodging companies, increases in wages,
energy costs and other operating costs, potential unionization or
union disruption, actual or threatened terrorist attacks, any type
of flu or disease-related pandemic and downturns in general and
local economic conditions, (ii) the availability and terms of
financing and capital and the general volatility of securities
markets, (iii) the Company’s dependence on third-party managers of
its hotels, including its inability to implement strategic business
decisions directly, (iv) risks associated with the real estate
industry, including environmental contamination and costs of
complying with the Americans with Disabilities Act of 1990, as
amended, and similar laws, (v) interest rate increases, (vi) the
possible failure of the Company to maintain its qualification 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, (ix) the risk of a material failure, inadequacy,
interruption or security failure of the Company’s or the hotel
managers’ information technology networks and systems, and (x) the
risk factors discussed in the Company’s Annual Report on Form 10-K
as updated in its Quarterly Reports. 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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version on businesswire.com: http://www.businesswire.com/news/home/20160518005791/en/
LaSalle Hotel PropertiesKenneth G. Fuller or Max D. Leinweber,
301-941-1500
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