Business & Finance
Business and Finance
Business and Finance
Fri, February 4, 2011
Chatham Lodging Trust Announces Exercise of Underwritersa? Overallotment Option to Purchase Additional Shares
PALM BEACH, Fla.--([ BUSINESS WIRE ])--[ Chatham Lodging Trust ] (NYSE: CLDT) today announced the full exercise of the underwritersa™ overallotment option to purchase an additional 600,000 common shares of beneficial interest at the public offering price of $16.00 per share, less the underwriting discount. The overallotment option was exercised in connection with the companya™s public offering of 4,000,000 common shares, which priced on February 2, 2011.
The offering is expected to close on February 8, 2011. All of the shares are being offered by the company.
The company will contribute the net proceeds of the offering to its operating partnership, which will use approximately $18 million to complete the acquisition of a hotel located in the greater Pittsburgh, Pennsylvania area, approximately $43 million of the net proceeds to pay down debt under the companya™s credit facility and the remaining net proceeds will be used for future investment in hotels and for general business purposes.
A registration statement relating to the offering of the companya™s common shares discussed above was declared effective by the Securities and Exchange Commission on February 2, 2011. 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 Capital and UBS Investment Bank are acting as the joint book-running managers for the offering, and FBR Capital Markets is acting as joint lead manager. Morgan Keegan, Credit Agricole CIB, Piper Jaffray, Stifel Nicolaus Weisel and JMP Securities are acting as co-managers. A copy of the prospectus can be obtained by contacting Barclays Capital, c/o Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, NY 11717, telephone (888) 603-5847 or by e-mail at [ barclaysprospectus@broadridge.com ], or by contacting any of the other underwriters listed above.
About Chatham Lodging Trust
Chatham Lodging Trustis 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 13 hotels with an aggregate of 1,650 rooms/suites in nine states.
FORWARD-LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS 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 PRESENT EXPECTATIONS, BUT THESE STATEMENTS ARE NOT GUARANTEED TO OCCUR. FOR EXAMPLE: THE FACT THAT THIS OFFERING HAS PRICED MAY IMPLY THAT THE OFFERING WILL CLOSE; BUT THE CLOSING IS SUBJECT TO CONDITIONS CUSTOMARY IN TRANSACTIONS OF THIS TYPE AND MAY BE DELAYED OR MAY NOT OCCUR AT ALL. STATEMENTS CONTAINING WORDS SUCH AS aEXPECTS,a aBELIEVESa OR aWILL,a WHICH INDICATE THAT THOSE STATEMENTS ARE FORWARD-LOOKING. EXCEPT FOR HISTORICAL INFORMATION, THE MATTERS DISCUSSED IN THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE THE ACTUAL RESULTS OR PERFORMANCE TO DIFFER MATERIALLY FROM THOSE DISCUSSED IN SUCH STATEMENTS. ADDITIONAL RISKS ARE DISCUSSED IN THE COMPANYa™S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD-LOOKING STATEMENTS.
