Ashford Banks $56M From First Preferred Stock Sale

The preferred stock will begin trading Wednesday on the New York Stock Exchange. The 8.55% series A cumulative preferred stock was tagged at $25 per share and generated strong enough demand that underwriters put an over-allotment option into play to buy 300,000 more shares, according to an Ashford Hospitality press release.

Ashford intends to make its first distribution in mid-January 2005. The plan calls for an annual distribution of $2.13 per preferred share, which can be redeemed at Ashford's discretion at the $25 per share buy-in rate plus accrued and unpaid dividends to the redemption date. The preferred stock has no maturity date, sinking fund or mandatory redemption and can't be converted into any other Ashford securities, the release says.

Wachovia Securities and Friedman Billings Ramsey were joint book-running managers. Legg Mason Wood Walker Inc. and Stifel, Nicolaus & Co. Inc. were co-managers.

Ashford, led by Monty J. Bennett, marked its one-year anniversary with the sale's announcement. The REIT, one of the hospitality industry's most active buyers, now owns 32 hotels with 4,441 room in about 20 states...and more under contract.