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Summit Hotel Properties, Inc. Prices Public Offering of 9.25% SeriesA Preferred Stock

^{Published on 2011-10-25 09:06:16 - Market Wire}
 

SIOUX FALLS, S.D.--([ BUSINESS WIRE ])--Summit Hotel Properties, Inc. (NYSE: INN) (the aCompanya) today announced the pricing of an underwritten public offering of 2,000,000 shares of its 9.25% SeriesA Cumulative Redeemable Preferred Stock (aSeriesA Preferred Stocka) at a public offering price of $25.00 per share. Dividends on the Series A Preferred Stock will be payable quarterly in arrears on or about the last day of February, May, August and November of each year, commencing on or about November 30, 2011, at the rate of 9.25% per annum of the $25.00 liquidation preference, which is equivalent to $2.3125 per annum per share. The offering is expected to close on October 28,2011. The underwriters have a 30-day option to purchase up to an additional 300,000 shares of SeriesA Preferred Stock to cover over-allotments, if any. All the shares are being sold by the Company.

The Company estimates that the net proceeds from this offering, after deducting underwriting discounts, commissions and estimated offering expenses, will be approximately $48.0 million (or approximately $55.3 million if the underwritersa over-allotment option is exercised in full). The Company expects to use the net proceeds to repay the debt outstanding on its revolving credit facility and the balance, if any, for general corporate purposes.

Wells Fargo Securities, Baird, Deutsche Bank Securities and RBC Capital Markets are acting as book-running managers for the offering. KeyBanc Capital Markets is acting as a co-manager for the offering.

A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. A copy of the final prospectus related to the offering will be filed with the Securities and Exchange Commission and can be obtained, when available, by contacting: Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attention: Capital Markets Client Support, or by calling (800) 326-5897, or by e-mail at [ cmclientsupport@wellsfargo.com ]; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, or by calling (800) 792-2413, or by email at [ syndicate@rwbaird.com ]; Deutsche Bank Securities Inc., Attention: Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, NJ 07311-3988, or by calling (800) 503-4611, or by e-mail at [ prospectus.cpdg@db.com ]; RBC Capital Markets, LLC, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098, or by calling (866) 375-6829, or by email at [ rbcnyfixedincomeprospectus@rbccm.com ].

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. This offering is being made solely by means of the prospectus.

About Summit Hotel Properties, Inc.

Summit Hotel Properties, Inc. is a self-advised real estate investment trust focused on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments. As of October 25, 2011, the Companyas hotel portfolio consisted of 70 hotels, containing a total of 7,100 guestrooms, located in 19 states.

Forward-Looking Statements

This press release contains certain aforward-lookinga 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 Companyas expectations, but these statements are not guaranteed to occur. For example, the fact that this offering has priced may imply that this 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. Investors should not place undue reliance upon forward-looking statements.