At the same time, some large holders of Lodgian's Series A Preferred Stock are exchanging their total $43 million in shares for 4.1 million shares of common at $10.50 per share. The company says the shareholders are using this tactic, "rather than have all of their preferred stock investment be cashed out in the company's planned redemption of the preferred stock."
Lodgian's common is traded on the American Stock Exchange under the LGN symbol. The stock is trading in the $10.61-per-share range. All of the shares were offered by the company. Merrill Lynch & Co. and Citigroup Global Markets Inc. are acting as joint book-running managers for the offering. Banc of America Securities LLC, Legg Mason Wood Walker Inc. and Raymond James & Associates are co-managers.
Lodgian has granted the underwriters an option to purchase up to an additional 2.7 million common shares to cover any over-allotments. Lodgian's management portfolio comprises 88 hotels with 16,627 rooms in 30 states and Canada.
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