Pebblebrook Hotel Trust Announces Redemption of 6.50% Series C Cumulative Redeemable Preferred Shares

Rhea-AI Summary

Pebblebrook Hotel Trust (NYSE: PEB) announced the redemption of all 5,000,000 Series C Cumulative Redeemable Preferred Shares, contingent on completing its offering of 5.700% Series H Cumulative Redeemable Preferred Shares. Each Series C share will be redeemed for $25.00 plus accrued dividends, effective August 22, 2021. Dividends on Series C shares will cease upon redemption, and payment will occur only upon surrender of the shares to Equiniti Trust Company. The notice and related materials were mailed to Series C shareholders.

Positive

• Redemption of 5,000,000 Series C Preferred Shares improves financial structure.
• Issuing Series H Preferred Shares may attract new investors.

Negative

• Redemption may indicate refinancing pressures or financial instability.
• Ceasing dividends on Series C shares could affect investor sentiment.

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today provided notice to the record holders (the “Notice of Redemption”) of the Company’s 6.50% Series C Cumulative Redeemable Preferred Shares (the “Series C 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 C Preferred Shares. The cash redemption amount (the “Redemption Amount”) for each Series C Preferred Share is $25.00, plus accrued and unpaid dividends to, but not including, the redemption date of August 22, 2021 (the “Redemption Date”).

Subject to completion of the Series H Offering, dividends on the Series C 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 C 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 will be mailed today to holders of record of the Series C 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 C Preferred Shares.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210723005050/en/

FAQ

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

The redemption amount is $25.00 per Series C Preferred Share, plus accrued and unpaid dividends.

When is the redemption date for Pebblebrook's Series C Preferred Shares?

The redemption date is August 22, 2021.

What will happen to dividends on Series C Preferred Shares after the redemption?

Dividends on the Series C Preferred Shares will cease to accrue on the redemption date.

How can holders of Series C Preferred Shares receive their redemption payments?

Holders must deliver and surrender their Series C Preferred Shares to Equiniti Trust Company during normal business hours.

What is the purpose of the Series H Offering by Pebblebrook?

The Series H Offering is intended to fund the redemption of the Series C Preferred Shares.