Stock Offering to Yield $55M for Hotel REIT

BETHESDA, MD-LaSalle Hotel Properties is due to be on the receiving end of a nice chunk of cash. The hotel REIT has made a public offering of 2.7 million of the company’s common shares of beneficial interest. As a result, LaSalle will walk away with a net amount of nearly $55.4 million.

UBS Securities is the underwriter on the deal, and reserves the right to acquire as many as 300,000 additional common shares of beneficial interest for the purpose of handling potential over-allotments.

The proceeds of this transaction will be funneled toward the paying down of the balance on a $215 million senior unsecured credit facility facilitated by Bank of Montreal and Fleet National Bank in November 2003. LaSalle last sold common shares of beneficial interest, three million to be exact, on November 10 of last year, just days before it replaced its existing credit facility at the time with the newer $215 million facility. That offering yielded nearly $50 million.