Braemar Hotels & Resorts Inc. (NYSE: BHR) (the Company) announced today that it has priced its underwritten public offering of 1,600,000 shares of 8.25% Series D Cumulative Preferred Stock, par value $0.01 per share (the Series D Preferred Stock) at $25.00 per share.
Dividends on the Series D Preferred Stock will accrue at a rate of 8.25% per annum on the liquidation preference of $25.00 per share. Settlement of the offering is expected to occur on or about November 20, 2018. The underwriters have been granted a 30-day option to purchase an additional 240,000 shares as part of this offering.
The Company intends to use the net proceeds from this offering to finance the acquisition of the 170-room Ritz-Carlton Lake Tahoe in Truckee, California (the Ritz-Carlton Acquisition). In the event the Ritz-Carlton Acquisition does not close, the Company intends to use the net proceeds from this offering for general corporate purposes, which may include but are not limited to: repayment of debt or other maturing obligations, financing future hotel related investments, capital expenditures and working capital.
Morgan Stanley & Co. LLC, UBS Securities LLC and Citigroup Global Markets Inc. acted as joint book-running managers for the offering. B. Riley FBR, Inc., Robert W. Baird & Co. Incorporated, D.A. Davidson & Co., Deutsche Bank Securities Inc. and Janney Montgomery Scott LLC acted as co-managers for the offering.
The Series D Preferred Stock will be issued and sold pursuant to an effective shelf registration statement (including a prospectus) on Form S-3 previously filed with the Securities and …
[Read on via official release]
Source: US SEC
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