BETHESDA, MD—Locally-based REIT RLJ Lodging Trust has netted $202.3 million from a public offering of 8 million common shares of its stock, upsized from an original 7.5 million. The shares were priced at $26.45 per unit
The company also granted the underwriters a 30-day option to purchase up an additional 1.2 million common shares, with a close date on or about May 28, 2014.
The company intends to use the proceeds to fund potential acquisitions and for general corporate purposes.
The former, it would appear from the REIT's earnings call earlier this month, are already well underway. Tom Baltimore, president and CEO told listeners that its "acquisition pipeline remains very active and we are very close to having several assets under contract or letter of intent." It is possible, at least reading between the lines of Baltimore's comments, that this next series of deals will be off-market.
Said Baltimore: "Over the years, we have cultivated strong relationships and developed a reputation for being able to execute with complex transactions. As a result, we have been able to source high-quality off-market deals like our recent Hyatt portfolio acquisition."
Even without the offering, RLJ's firepower for further deals is more than respectable. The REIT ended the quarter with a cash balance of $271 million and an undrawn credit facility of $300 million.
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