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Sotherly Hotels LP announces launch of public offering of senior unsecured notes

By on September 20, 2021 0

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WILLIAMSBURG, Virginia, September 20, 2021 (GLOBE NEWSWIRE) – Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) announced today that its operating partnership, Sotherly Hotels LP, a Delaware limited partnership (the “Operating Partnership” and, together with the Company, “we”, “us” and “Our”), has commenced a subscribed public offering of its Senior Unsecured Notes (the “Notes”), subject to market and other conditions. The Notes will be fully and unconditionally guaranteed by the Company. The Operating Company expects to grant the Underwriters a 30-day option to purchase up to an additional 15% of the Offered Notes to cover over-allotments, if any, at the public offering price. The Operating Company has applied to list the Notes on the NASDAQ® Global Market under the symbol “SOHOL”.

The operating company intends to use the net proceeds of the offering to further strengthen our balance sheet, including repaying $ 20.0 million of outstanding secured debt under our secured notes issued to KWHP SOHO, LLC and MIG SOHO, LLC, plus any accrued but unpaid interest and any repair or premium then due and payable on such secured debt, which we estimate to be approximately $ 9.7 million. In addition, the Operating Company will use a portion of the net proceeds from the sale of the Notes to fund the deposit of one year of interest payments into a reserve account from which the first four quarterly payments on the Notes will be made. , and intends to use the remaining net proceeds from ticket sales, if any, for general corporate purposes.

Piper Sandler & Co. and Janney Montgomery Scott are acting as co-book managers for the offer. The offering is being conducted as a public offering under the registration statement filed jointly by the company and the operating company on Form S-11, which has been filed with the Securities and Exchange Commission (” SEC ”) (files n ° 333-258195 and 333 -258195-01) but has not yet been declared effective. The Bonds cannot be sold and offers to buy cannot be accepted before the entry into force of the registration statement. The offer is being made only by means of a preliminary prospectus. Copies of the preliminary prospectus and prospectus, when available, can be obtained from Piper Sandler & Co. at 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, Attention: Prospectus Department, or by calling the number toll free 1-866-805-4128, or by email at [email protected], or from Janney Montgomery Scott LLC by email at [email protected]

This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be illegal. prior to registration or qualification under the securities laws of any such state or jurisdiction.

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although we believe that the expectations and assumptions reflected in forward-looking statements are reasonable, such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict and many of which are beyond our control.

Therefore, actual results and results may differ materially from what is expressed, expected or implied in these forward-looking statements. Factors that could have a material adverse effect on our future results, performance and achievements include, but are not limited to: information about our ability to complete the public offering of the Notes and the intended use of proceeds from the Notes. supply, national and local economic and business conditions that affect the occupancy rates and revenues of our hotels and the demand for hotel products and services; risks associated with the hospitality industry, including competition and new supply of hotel rooms, salary increases, energy costs and other operating costs; risks associated with adverse weather conditions, including hurricanes; impacts on the travel industry of pandemic diseases, including COVID-19, the availability and conditions of financing and capital and the general volatility of the securities markets; the intention of the Company to repurchase shares from time to time; the risks associated with our level of indebtedness and our ability to comply with the covenants of our debt agreements and, if necessary, to refinance or request an extension of the maturity of this debt or to modify these debt agreements; the management and performance of our hotels; risks associated with maintaining our system of internal controls; the risks associated with conflicts of interest of the officers and directors of the Company; risks associated with redevelopment and repositioning projects, including delays and cost overruns; supply and demand for hotel rooms in our current and proposed market areas; risks associated with our ability to maintain our franchise agreements with our third party franchisors; our ability to acquire additional properties and the risk that potential acquisitions may not proceed according to expectations; our ability to successfully expand into new markets; legislative / regulatory changes, including changes in laws governing the taxation of REITs; the Company’s ability to maintain its qualification as a REIT; and our ability to maintain adequate insurance coverage. These risks and uncertainties are further described in our registration statement, under “Risk Factors” in our Annual Report on Form 10-K and subsequent reports filed with the SEC. We assume no obligation and do not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe our current expectations are based on reasonable assumptions, we cannot guarantee that our expectations will be met or that actual results will not differ materially.

About Sotherly Hotels Inc.

Sotherly Hotels Inc. is a self-managed, self-managed accommodation REIT focused on acquiring, renovating, upgrading and repositioning high-end to high-end full-service hotels in the Southern United States. Currently, the Company’s portfolio consists of investments in twelve hotel properties, comprising 3,156 rooms, as well as interests in two hotel condominiums and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide, Marriott International, Inc. and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was established in 2004 and is headquartered in Williamsburg, Virginia.

Company Contact: Mack Sims Otherly Hotels Inc. 306 S Henry Street, Suite 100 Williamsburg, Virginia 23185 (757) 229-5648

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