Hersha Hospitality Trust raises $117.3 million in share offering; proceeds to pay down debt
By APWednesday, March 24, 2010
Hersha Hospitality raises $117.3M in share sale
PHILADELPHIA — Hersha Hospitality Trust on Wednesday said it raised $117.3 million in a public share offering.
The real estate investment trust, which owns upscale hotels in the Northeast, California and Arizona, said 27.6 million shares were sold, including 3.6 million sold in an overallotment option exercised by underwriters.
The proceeds were calculated without deducting the underwriting discount and offering expenses.
Hersha said it will use its profit from the sale to repay outstanding debt under its revolving line of credit and for general corporate purposes.
Bank of America Merrill Lynch, Raymond James and UBS Investment Bank acted as the joint book-running managers for the offering. Baird acted as a lead manager for the offering. Barclays Capital, Citadel Securities, FBR Capital Markets, JMP Securities, Keefe, Bruyette & Woods, Oppenheimer & Co. and Stifel, Nicolaus & Co. acted as co-managers for the offering.
Hersha Hospitality shares closed Wednesday trading up 36 cents, or 7.6 percent, at $5.13, after hitting a 52-week high of $5.30 during the session. The shares traded as low as $1.48 in the past 52 weeks.
