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Pebblebrook Hotel Trust Prices Public Offering of $215 Million of 1.75% Senior Notes

· 02/05/2021 02:18

07:10 AM EST, 02/05/2021 (MT Newswires) -- Pebblebrook Hotel Trust (PEB) said Friday it priced on Feb. 4 an underwritten public offering of $215 million of its 1.75% convertible senior notes due 2026. The offering is expected to close on Feb. 9.

The company has granted the underwriters a 13-day option to purchase up to an additional $35 million of the notes solely to cover over-allotments.

The notes will have an initial conversion rate of 39.2549 per $1,000 of the notes, which is equivalent to a conversion price of around $25.47 per common share of the company and a conversion premium of 35% based on the closing price of $18.87 per common share on Dec. 10.

The company intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions.

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