A public offer of a volume of 3.3 million shares owned by Chatham Lodging Trust had been valued at USD59.6 million. This was confirmed by the company last Wednesday with the price per share pegged at USD18.35.
The net proceeds of the real estate investment trust's offer would be made available to its operating partnership in exchange for common limited partnership interest units. The funds would be used to repay debt under a senior secured revolving credit facility. Part of the fund would also be used to acquire Residence Inn Seattle Bellevue/Downtown located in Bellevue, WA. The remainder would be invested in other hotels and general corporate purposes.
There is also an option available to underwriters to have a 30-day option to purchase an additional 487,500 shares for any excess demand. The offer is scheduled to be closed by Monday.
The share values of Chatham Lodging Trust declined by 6.5% or USD1.26 per share, leaving the market amount at USD18.13 in morning trading. Over the year, the range of Chatham share prices seesawed between USD12.74 and USD19,97.
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