Winston Hotels Prices Follow-on Offering of 2,400,000 Shares of Common Stock
25 August 2006 - 3:12PM
Business Wire
Winston Hotels, Inc. (NYSE: WXH), a real estate investment trust
(REIT) that owns, acquires and develops hotels directly and through
joint ventures, originates and acquires hotel loans and provides
hotel development and asset management services to joint ventures
in which it invests, today announced the pricing of a follow-on
public offering of 2,400,000 shares of common stock at $11.75 per
share. The net proceeds of the offering to the company are expected
to be approximately $26.4 million. The company intends to use the
net proceeds from this offering to reduce borrowings under its line
of credit and for general corporate purposes. Friedman, Billings,
Ramsey & Co., Inc. acted as sole book-runner of the offering
and Raymond James & Associates, Inc. acted as co-lead manager,
with Robert W. Baird & Co. Incorporated and BB&T Capital
Markets, a division of Scott & Stringfellow, Inc., acting as
co-managers for the offering. The company has granted the
underwriters an option, exercisable within 30 days after the
pricing date, to purchase up to 360,000 additional shares of common
stock to cover over-allotments, if any. This press release shall
not constitute an offer to sell or the solicitation of an offer to
buy any of these securities, nor will there be any sale of these
securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state. The offering of these securities
will be made only by means of a prospectus, copies of which may be
obtained from Friedman, Billings, Ramsey & Co., Inc., 1001 19th
Street North, Arlington, Virginia 22209. About the Company The
company currently owns or is invested in 52 hotel properties in 17
states having an aggregate of 7,055 rooms. This includes 44 wholly
owned properties with an aggregate of 5,984 rooms and eight hotels
in joint ventures totaling 1,071 rooms. The company's joint venture
hotels include a 60% ownership interest in a joint venture that
owns one hotel with 138 rooms, a 49% ownership interest in a joint
venture that owns one hotel with 118 rooms, a 48.78% ownership
interest in a joint venture that owns one hotel with 147 rooms, a
13.05% ownership interest in a joint venture that owns four hotels
with an aggregate of 545 rooms and a 0.21% ownership interest in a
joint venture that owns one hotel with 123 rooms, for which
substantially all of the profit or loss generated by the joint
venture is allocated to the company. As of June 30, 2006, the
company also had approximately $59.7 million of outstanding loans
in its loan portfolio that it originated or purchased. The company
does not hold an ownership interest in any of the hotels for which
it has provided financing. Notes About Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements. The reader can identify these
statements by use of words like "may," "will," "expect," "project,"
"anticipate," "estimate," "target," "believe," or "continue" or
similar expressions, including without limitation its acquisition,
disposition and development plans for hotel properties, its hotel
lending plans, its dividend policy, and its estimated net income
available to common shareholders, net income available to common
shareholders per share, FFO available to common shareholders, FFO
available to common shareholders per share and RevPAR. These
statements represent the company's judgment and are subject to
risks and uncertainties that could cause actual operating results
to differ materially from those expressed or implied in the forward
looking statements including, but not limited to, the failure of
customary closing conditions, changes in general economic
conditions, lower occupancy rates, lower average daily rates,
acquisition risks, development risks including risk of construction
delay, cost overruns, occupancy and governmental permits, zoning,
the increase of development costs in connection with projects that
are not pursued to completion, the risk of non-payment of
subordinated loans, or the failure to make additional hotel debt
investments and investments in hotels. Other risks are discussed in
the company's filings with the Securities and Exchange Commission,
including but not limited to its Annual Report on Form 10-K for the
year ended December 31, 2005. For more information, call Patti
Bell, Assistant Vice President of Administration & Investor
Relations of Winston Hotels, Inc., at (919) 510-8003. For more
information on Winston Hotels visit the Winston Hotels page at
www.winstonhotels.com.
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