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Chatham Lodging Trust Prices Public Offering of 6.625% Series A Cumulative Redeemable Preferred Shares
The Company will contribute the net proceeds from the sale of the Shares to its operating partnership in exchange for preferred units. The operating partnership intends to use the net proceeds to repay indebtedness under the Company’s revolving credit facility. Borrowings under the Company’s revolving credit facility that the operating partnership repays with net proceeds from this offering may be re-borrowed, subject to customary conditions. After using the net proceeds from this offering to repay indebtedness under the Company’s revolving credit facility, the operating partnership intends to re-borrow funds under the Company’s revolving credit facility to fund the purchase price for the Austin Acquisitions (as defined below). To the extent the operating partnership does not use the net proceeds of this offering to repay indebtedness under the Company’s revolving credit facility or fund the Austin Acquisitions, the operating partnership intends to use the net proceeds of this offering for general business purposes, including, without limitation, funding the Company’s investment activity, repayment of indebtedness and working capital. As of
The Shares will be issued under the Company's currently effective shelf registration statement on Form S-3 filed with the
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 press release contains certain “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 expectations, but these statements are not guaranteed to occur. For example, the fact that the 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. In addition, the fact that the underwriters have an over-allotment option may imply that this option will be exercised. However, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. The Company cannot assure Investors that it will complete the Austin Acquisitions because the acquisitions are subject to the Company’s completion of satisfactory due diligence and other customary closing conditions. Investors should not place undue reliance upon forward-looking statements.
Chief Operating Officer
DG Public Relations