AUSTIN, Texas--(BUSINESS WIRE)--Summit Hotel Properties, Inc. (NYSE:INN) (the “Company”) today announced the commencement of an underwritten public offering of 15,000,000 shares of its common stock, par value $0.01 per share. The Company intends to grant the underwriters of the offering a 30-day option to purchase up to an additional 2,250,000 shares. The shares will be offered pursuant to the Company’s effective shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission.
The Company will contribute the net proceeds of the offering to Summit Hotel OP, LP, its operating partnership (the “Operating Partnership”), which will use the net proceeds to reduce the outstanding balances under the Company’s $150 million senior secured revolving credit facility and the Company’s $92 million senior secured interim loan and any remaining net proceeds will be used for general corporate purposes, including repayment of debt and acquisitions of additional hotel properties.
BofA Merrill Lynch, Deutsche Bank Securities, Baird, Raymond James, and RBC Capital Markets are acting as book-running managers for the offering.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, or any solicitation of an offer to buy, 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. The offering is being made solely by means of the prospectus, including a preliminary prospectus supplement, forming part of the effective shelf registration statement.
Copies of the preliminary prospectus supplement and base prospectus relating to the offering will be filed with the Securities and Exchange Commission and, when available, can be obtained by contacting: BofA Merrill Lynch, Attention: Prospectus Department, 222 Broadway, New York, NY 10038, Email: dg.prospectus_requests@baml.com; Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, NY 10005, E-mail: prospectus.cpdg@db.com; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, E-mail: syndicate@rwbaird.com; Raymond James & Associates, Inc., Attention: Prospectus Department, 880 Carillon Parkway, St. Petersburg, Florida 33716, E-mail prospectus@raymondjames.com; RBC Capital Markets, LLC, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098, Telephone: (877) 822-4089.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused primarily on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments of the lodging industry. As of September 12, 2013, the Company’s portfolio consisted of 93 hotels with a total of 10,976 guestrooms located in 24 states.
Forward Looking Statements
This press release contains statements that are “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. Investors should not place undue reliance upon forward-looking statements. These statements relate to the Company’s common stock offering and the anticipated use of the net proceeds. No assurance can be given that the common stock offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Completion of the common stock offering on the terms described, and the application of net proceeds, are subject to numerous conditions, many of which are beyond the control of the Company, including, without limitation, general economic conditions, market conditions and other factors, including those set forth in the Risk Factors section of the Company’s periodic reports and other documents filed with the Securities and Exchange Commission (the “SEC”). Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements after the date of this release.
