trending Market Intelligence /marketintelligence/en/news-insights/trending/rIWCXxPKXrWk18agfZo6Zg2 content esgSubNav
In This List

American Hotel Income Properties to acquire hotel portfolio for US$407M

Blog

Corporate Credit Risk Trends in Developing Markets An Expected Credit Loss ECL Perspective

Blog

Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage

Blog

Corporate Credit Risk Trends in Developing Markets: A Loss Given Default (LGD) Perspective

Blog

Real Estate News & Analysis: May Edition


American Hotel Income Properties to acquire hotel portfolio for US$407M

American Hotel Income Properties REIT LP agreed to acquire an 18-hotel U.S. portfolio for roughly US$407.4 million. It also launched a bought-deal public offering of limited partnership units and convertible debentures in connection with the purchase.

The portfolio includes 18 Marriott and Hilton hotels and contains 2,187 guestrooms with properties spread across Maryland, New Jersey, New York, Connecticut and Pennsylvania. The deal is expected to close by the end of June.

American Hotel Income Properties has agreed to sell on a bought-deal basis 18,360,000 limited partnership units and US$42.5 million worth of 5.00% convertible unsecured subordinated debentures due June 30, 2022.

The units will be priced at C$10.35 apiece with expected gross proceeds of around C$190.0 million. The company granted the underwriters an overallotment option to buy a further 2,754,000 units and roughly US$6.38 million of debentures.

The conversion price for the debentures is equal to US$9.25 per unit and represents a conversion rate of roughly 108.1081 units for each US$1,000 principal amount of debentures.

The company plans to use the proceeds to fund the purchase of the hotel portfolio, for possible prospective purchases and for general business needs.

The offering is set to close by June 9.

CIBC Capital Markets and National Bank Financial co-lead the offering, while CIBC Capital Markets serves as sole book runner.