Sotherly Hotels Inc. completed its 7.875% series C cumulative redeemable perpetual preferred stock offering for roughly $28.0 million in expected net proceeds.
The company offered 1.2 million series C preferred shares at $25.00 apiece, with a 30-day overallotment option for the underwriters to buy up to 180,000 additional shares.
Sotherly funneled the net proceeds to its operating partnership, which aims to use the funds for the full redemption of its 7.0% senior unsecured notes due 2019. The remaining funds will be used for potential hotel acquisitions, among other general corporate purposes.
Sandler O'Neill + Partners LP and Janney Montgomery Scott LLC were the joint book runners for the offering, while Boenning & Scattergood Inc. and J.J.B. Hilliard W.L. Lyons LLC were the co-managers.