Summit Hotel Properties, Inc. Announces Redemption of 6.45% Series D Cumulative Redeemable Preferred Stock

Rhea-AI Summary

Summit Hotel Properties announced the planned redemption of its 6.45% Series D Cumulative Redeemable Preferred Stock, totaling 3,000,000 shares, at a cash value of $25.00 per share plus accrued dividends. The redemption date is set for September 4, 2021. This action is contingent upon the successful completion of the 5.875% Series F Cumulative Redeemable Preferred Stock offering. Holders of the Series D stock will cease to receive dividends post-redemption date, with payments made upon surrender of shares to Broadridge Financial Solutions.

Positive

• The successful completion of the Series F Offering may enhance the company's capital structure.
• The redemption of the Series D Preferred Stock could reduce future dividend obligations, potentially improving cash flow.

Negative

• The redemption is subject to completion of the Series F Offering, introducing uncertainty regarding timing.
• Redeeming the Series D Preferred Stock may indicate a need for restructuring the company's capital strategy.

AUSTIN, Texas, Aug. 5, 2021 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today provided notice to the record holders (the "Notice of Redemption") of the Company's 6.45% Series D Cumulative Redeemable Preferred Stock (the "Series D Preferred Stock") of the redemption, subject to completion of the Company's public underwritten offering of 5.875% Series F Cumulative Redeemable Preferred Stock (the "Series F Offering"), of all 3,000,000 of the issued and outstanding shares of Series D Preferred Stock. The cash redemption amount (the "Redemption Amount") for each share of Series D Preferred Stock is $25.00, plus accrued and unpaid dividends to, but not including, the redemption date of September 4, 2021 (the "Redemption Date").

Subject to completion of the Series F Offering, dividends on the Series D Preferred Stock will cease to accrue on the Redemption Date. Payment of the Redemption Amount will be made only upon delivery and surrender of the Series D Preferred Stock to Broadridge Financial Solutions, Inc., the Company's redemption and paying agent, during its normal business hours at the address specified in the Notice of Redemption.

The Notice of Redemption and related materials were mailed today to holders of record of the Series D Preferred Stock. Questions relating to the Notice of Redemption and related materials should be directed to Broadridge Financial Solutions, Inc. at 1-877-830-4936 or shareholder@broadridge.com.

About Summit Hotel Properties, Inc.

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry. As of August 5, 2021, the Company's portfolio consisted of 73 hotels, 61 of which were wholly owned, with a total of 11,398 guestrooms located in 23 states.

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These forward-looking statements relate to the redemption of the Series D Preferred Stock.

View original content to download multimedia:https://www.prnewswire.com/news-releases/summit-hotel-properties-inc-announces-redemption-of-6-45-series-d-cumulative-redeemable-preferred-stock-301349856.html

SOURCE Summit Hotel Properties, Inc.

FAQ

What is the redemption amount for Summit Hotel Properties' Series D Preferred Stock?

The redemption amount is $25.00 per share, plus accrued and unpaid dividends.

When is the redemption date for the Series D Preferred Stock?

The redemption date is set for September 4, 2021.

What is the total number of Series D Preferred Stock shares being redeemed?

A total of 3,000,000 shares of Series D Preferred Stock are being redeemed.

What conditions must be met for the Series D redemption to occur?

The redemption is contingent upon the successful completion of the Series F Offering.

Who should shareholders contact for questions regarding the redemption notice?

Shareholders should contact Broadridge Financial Solutions at 1-877-830-4936.