Pebblebrook Hotel Trust Announces Redemption of 6.375% Series D Cumulative Redeemable Preferred Shares

Rhea-AI Summary

Pebblebrook Hotel Trust (NYSE: PEB) announced the redemption of 5,000,000 Series D Cumulative Redeemable Preferred Shares, pending completion of its Series H Offering. The redemption amount is set at $25.00 per share, plus accrued dividends, ceasing on the Redemption Date of August 21, 2021. Holders must surrender their shares to Equiniti Trust Company for payment. The company owns 52 hotels with approximately 12,800 guest rooms across the U.S., predominantly in major urban and resort markets.

Positive

• Redemption of Series D Preferred Shares, improving capital structure.
• Transitioning to Series H Preferred Shares, potentially offering better terms.

Negative

• Dependence on successful completion of Series H Offering for redemption.
• Potential impacts on liquidity due to the redemption process.

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today provided notice to the record holders (the “Notice of Redemption”) of the Company’s 6.375% Series D Cumulative Redeemable Preferred Shares (the “Series D Preferred Shares”) of the redemption, subject to completion of the Company’s public underwritten offering of 5.700% Series H Cumulative Redeemable Preferred Shares (the “Series H Offering”), of all 5,000,000 of the issued and outstanding Series D Preferred Shares. The cash redemption amount (the “Redemption Amount”) for each Series D Preferred Share is $25.00, plus accrued and unpaid dividends to, but not including, the redemption date of August 21, 2021 (the “Redemption Date”).

Subject to completion of the Series H Offering, dividends on the Series D Preferred Shares 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 Shares to Equiniti Trust Company, 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 Shares. Questions relating to the Notice of Redemption and related materials should be directed to Equiniti Trust Company at 651-450-4064.

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.

This press release contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company’s expectations, but these statements are not guaranteed to occur. These forward-looking statements relate to the redemption of the Series D Preferred Shares.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005993/en/

FAQ

What is the redemption amount for Pebblebrook's Series D Preferred Shares?

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

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

The redemption date is August 21, 2021.

What must holders do to receive the redemption payment?

Holders must surrender their Series D Preferred Shares to Equiniti Trust Company.

What is the purpose of Pebblebrook's Series H Offering?

The Series H Offering is intended to facilitate the redemption of Series D Preferred Shares.

How many hotels does Pebblebrook Hotel Trust own?

Pebblebrook owns 52 hotels totaling approximately 12,800 guest rooms.