PHILADELPHIA-Hersha Hospitality Trust prices a public offering of 2.4 million shares of its 8% series A cumulative redeemable preferred shares at a liquidation preference of $25 a share. This is 400,000 more shares than were initially indicated in the locally based hospitality REIT's SEC filing, which CFO Ashish Parikh confirmed to GlobeSt.com at the time. For additional information, click here.
As a result, Hersha now expects net proceeds of a little more than $57.9 million, less its expenses, versus the initial $50-million raise in equity Parikh said the company was targeting. Portions of the proceeds will help to fund Mystic Partners, a joint-venture being formed between Hersha and Waterford, CT-based Waterford Hospitality Group to own a $250-million, nine-property hotel portfolio previously owned by Waterford.
Hersha's investment in the JV's portfolio, according to Jay Shah, president and COO, is $142 million. Approximately $160 million in debt refinancing related to, and split among the nine properties is a condition of closing on the JV partnership.
Wachovia Capital Markets and UBS Securities are joint book running managers of the Hersha offering. Co-managers are Raymond James & Associates, Robert W. Baird & Co. and Stifel Nicolaus & Co.
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