Pebblebrook Hotel Trust Announces Pricing of $400 Million of 6.375% Senior Notes Due 2029
September 24 2024 - 7:00AM
Business Wire
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today
announced that on September 23, 2024, its operating partnership,
Pebblebrook Hotel, L.P. (the “Operating Partnership”) and a wholly
owned subsidiary of the Operating Partnership, PEB Finance Corp.
(together with the Operating Partnership, the “Issuers”), priced
the private placement of $400 million aggregate principal amount of
6.375% senior notes due 2029 (the “Notes”). The Notes will be
senior unsecured obligations of the Issuers and will initially be
fully and unconditionally guaranteed by the Company and the
Operating Partnership’s subsidiaries that guarantee the existing
credit facilities of the Operating Partnership. Subject to
customary closing conditions, the Issuers expect the private
placement of the Notes to close on October 3, 2024. The Operating
Partnership intends to use the net proceeds from the offering as
follows: (i) with at least $253.0 million, to pay down in whole or
in part one or more of the Operating Partnership’s unsecured term
loans and (ii) with the balance, which may be up to $137.4 million,
to pay down part of one or more of the Operating Partnership’s
other unsecured term loans and/or repurchase a portion of the
convertible senior notes of the Company.
The Notes and the related guarantees have not been and will not
be registered under the Securities Act of 1933, as amended (the
“Securities Act”), any state securities laws or the securities laws
of any other jurisdiction. The Notes may not be offered or sold in
the United States or to U.S. persons absent registration or
pursuant to an exemption from, or in a transaction not subject to,
registration. The Notes will be offered and sold only to persons
reasonably believed to be “qualified institutional buyers” pursuant
to Rule 144A under the Securities Act and to certain non-U.S.
persons in offshore transactions outside the United States pursuant
to Regulation S under the Securities Act. This press release is
neither an offer to sell nor a solicitation of an offer to buy the
Notes or any other securities and shall not constitute an offer to
sell or a solicitation of an offer to buy, or a sale of, the Notes
or any other securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
This press release contains certain “forward-looking” statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 and other federal securities laws, including those related
to the offering of Notes, the use of proceeds therefrom and whether
or not the Issuers will consummate the offering. Forward-looking
statements are generally identifiable by use of forward-looking
terminology such as “may,” “will,” “should,” “potential,” “intend,”
“expect,” “seek,” “anticipate,” “estimate,” “approximately,”
“believe,” “could,” “project,” “predict,” “forecast,” “continue,”
“assume,” “plan,” references to “outlook” or other similar words or
expressions. These forward-looking statements are subject to
various risks and uncertainties, many of which are beyond the
Company’s control, which could cause actual results to differ
materially from such statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240924031046/en/
Raymond D. Martz, Co-President and Chief Financial Officer,
Pebblebrook Hotel Trust - (240) 507-1330
Pebblebrook Hotel (NYSE:PEB)
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