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Chesapeake Lodging Trust Upsizes and Prices Public Offering of Common Shares

^{Published on 2010-10-06 17:41:05 - Market Wire}
 

ANNAPOLIS, Md.--([ BUSINESS WIRE ])--Chesapeake Lodging Trust (NYSE:CHSP) today announced it has priced its public offering of 7,900,000 common shares of beneficial interest at a public offering price of $16.25 per share, for a total of approximately $122.1 million of net proceeds, after deducting the underwriting discount and estimated offering costs. The size of the offering represents an increase over the 6,500,000 shares that the Company had previously announced.

Subject to satisfaction of customary conditions, the offering is expected to close October 13, 2010. The underwriters have a 30-day option to purchase up to an additional 1,185,000 shares to cover overallotments, if any. All the offered shares are being sold by the Company.

The Company intends to use the net proceeds of the offering to repay debt under its revolving credit facility, for hotel investments and for general business purposes.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC are the joint book-running managers for the offering, with Robert W. Baird & Co. Incorporated, KeyBanc Capital Markets Inc., FBR Capital Markets & Co. and RBC Capital Markets Corporation acting as co-managers.

A registration statement relating to the offering was declared effective by the Securities and Exchange Commission on October 6, 2010. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy the Company's common shares, nor shall there be any sale of these common shares or a solicitation of an offer to buy these common shares, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. A prospectus relating to these common shares may be obtained from J.P. Morgan Securities LLC, Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (866) 803 9204; Deutsche Bank Securities Inc., Attn: Prospectus Department, 100 Plaza One, Jersey City, NJ 07311, Telephone number: +1-800-503-4611, email: [ prospectus.cpdg@db.com ]; andWells Fargo Securities, LLC, Attn: Equity Syndicate Dept., 375 Park Avenue, New York, NY 10152, at 1-800-326-5897 or email a request to [ equity.syndicate@wellsfargo.com ].

ABOUT CHESAPEAKE LODGING TRUST

Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business, airport and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. The Company owns four hotel properties with an aggregate of 1,269 rooms in two states. Additional information can be found on the Companya™s website at [ www.chesapeakelodgingtrust.com ].

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the expected closing date for the offering, which is subject to satisfaction of customary closing conditions, and contemplated use of proceeds, as well as the fact that the underwriters may, but are not obligated to, exercise the overallotment option granted to them.Such statements are subject to numerous assumptions and uncertainties, many of which are outside Chesapeake Lodging Trust's control. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances, except as required by law.