Chatham Lodging Trust (the “company”) today announced that it has priced its public offering of 3,250,000 common shares of beneficial interest, $0.01 par value per share, at $18.35 per share, for total gross proceeds of $59,637,500, prior to underwriting discounts and offering expenses.
The offering is expected to close on September 30, 2013. The underwriters have a 30-day option to purchase up to an additional 487,500 shares to cover overallotments, if any.
The company will contribute the net proceeds of this offering to its operating partnership in exchange for common units of limited partnership interest in the operating partnership. The company’s operating partnership intends to use the net proceeds of the offering to repay debt under the company’s senior secured revolving credit facility (including debt to be incurred to purchase the 180-room Hilton Garden Inn Denver Tech Center in Denver, Colorado, for a cash purchase price of $27.9 million) and to fund a portion of the acquisition of the 231-room Residence Inn Seattle Bellevue/Downtown in Bellevue, Washington, for a cash purchase price of $73.2 million. The company’s operating partnership intends to use any remaining net proceeds to invest in additional hotel properties in accordance with the company’s investment strategy and for general corporate purposes.
The common shares were offered pursuant to a prospectus supplement to the company’s prospectus filed as part of the company’s existing shelf registration statement, which was declared effective by the Securities and Exchange Commission on February 10, 2012. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Barclays and UBS Investment Bank are acting as joint book-running managers for the offering, and Stifel and FBR are acting as senior co-managers. Baird, Credit Agricole CIB, JMP Securities and Piper Jaffray are acting as co-managers. A copy of the prospectus supplement and accompanying prospectus relating to the offering can be obtained by contacting Barclays c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Barclaysprospectus@broadridge.com, (888) 603-5847 or by contacting UBS Investment Bank, Attention: Prospectus Dept., 299 Park Avenue, New York, NY 10171, (888) 827-7275.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised real estate investment trust that was organized to invest in upscale extended-stay hotels and premium-branded select-service hotels. The company currently owns 22 hotels with an aggregate of 3,022 rooms/suites in twelve states and the District of Columbia.