Pebblebrook Hotel Trust Announces Exercise In Full of Underwriters’ Over-allotment Option and Subsequent Closing of Public Offering of 6.375% Series G Cumulative Redeemable Preferred Shares

Rhea-AI Summary

Pebblebrook Hotel Trust (NYSE: PEB) has successfully closed its public offering of 9,200,000 Series G Cumulative Redeemable Preferred Shares at $25.00 per share, generating net proceeds of approximately $222 million. The company plans to allocate these proceeds equally to debt reduction and general corporate purposes, which may include hotel property acquisitions. The offering was managed by well-known financial institutions including Raymond James and Wells Fargo Securities.

Positive

• Raised approximately $222 million in net proceeds.
• 50% of funds allocated to reduce outstanding debt, enhancing financial stability.
• Remaining proceeds may support property acquisitions, aligning with growth strategy.

Negative

• Potential dilution of existing shareholders due to the preferred share offering.

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced it has closed its previously announced underwritten public offering of 9,200,000 of its 6.375% Series G Cumulative Redeemable Preferred Shares (the “Shares”), including 1,200,000 Shares sold pursuant to the exercise in full of the underwriters’ over-allotment option to purchase additional Shares, at a public offering price of $25.00 per share, for net proceeds of approximately $222 million, after deducting the underwriting discount and estimated offering-related expenses.

The Company contributed the net proceeds from the sale of the Shares to its operating partnership. The operating partnership will use 50% of the net proceeds to reduce its outstanding debt and 50% of the net proceeds for general corporate purposes, which may include acquiring and investing in hotel properties in accordance with the Company’s investment strategy.

Raymond James, Wells Fargo Securities, BofA Securities and BMO Capital Markets Corp. acted as the joint book-running managers of the offering. Truist Securities, US Bancorp and PNC Capital Markets LLC acted as senior co-managers. Stifel, BBVA, Capital One Securities, Regions Securities LLC, Scotiabank, SMBC Nikko and TD Securities acted as co-managers.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and a leading owner of urban and resort lifestyle hotels in the United States. The Company owns 52 hotels, totaling approximately 12,800 guest rooms across 14 urban and resort markets with a focus on the west coast gateway cities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210513005858/en/

FAQ

What did Pebblebrook Hotel Trust announce in the latest press release?

Pebblebrook Hotel Trust announced the closing of its public offering of 9,200,000 Series G Cumulative Redeemable Preferred Shares, generating approximately $222 million in net proceeds.

How will Pebblebrook Hotel Trust use the proceeds from the recent offering?

The proceeds will be divided equally; 50% will reduce outstanding debt and 50% will be used for general corporate purposes, possibly including hotel property acquisitions.

What is the public offering price for Pebblebrook Hotel Trust's Series G shares?

The public offering price for the Series G Cumulative Redeemable Preferred Shares was set at $25.00 per share.

Who managed the public offering for Pebblebrook Hotel Trust?

The offering was managed by Raymond James, Wells Fargo Securities, BofA Securities, and BMO Capital Markets Corp.