Summit Hotel Properties has confirmed shares available to investors during its Initial Public Offering (IPO) will be priced at $9.75 per share.
The offering is expected to close on February 14th, 2011, with some 26 million shares available.
Pictured: New York is a popular destination for Summit Hotels
The underwriters have been granted a 30-day option to purchase up to an additional 3.9 million shares at the public offering price, less the underwriting discount, to cover over-allotments, if any.
All the shares are being offered by Summit Hotels.
The shares are expected to begin trading today on the New York Stock Exchange under the symbol ‘INN’.
Concurrent with the closing of the offering, the Summit expects to raise additional proceeds through a private placement to an affiliate of InterContinental Hotels Group on the terms described in the prospectus relating to the offering.
The company will contribute the net proceeds of the offering and concurrent private placement to its operating partnership, which will use the net proceeds to repay or extinguish existing indebtedness and to fund capital improvements at the company’s hotels and for general corporate and working capital purposes.
Deutsche Bank Securities, Baird and RBC Capital Markets are the joint book-running managers of the offering.
The co-managers of the offering are KeyBanc Capital Markets and Morgan Keegan.