Market Overview

Chatham Lodging Trust Announces Partial Exercise of Underwriters' Overallotment Option to Purchase Additional Shares


Chatham Lodging Trust (NYSE: CLDT) today announced the partial exercise of the underwriters' overallotment option to purchase an additional 475,823 common shares of beneficial interest, $0.01 par value per share, at the public offering price of $16.35 per share less the underwriting discount. The overallotment option, which will provide additional gross proceeds of $7,779,706 to the company, prior to deduction of the underwriting discount and offering expenses, was exercised in connection with the company's public offering of 4,500,000 common shares, which priced on June 13, 2013. The issuance of shares pursuant to the overallotment option closed on June 28, 2013.

The company will contribute the net proceeds of the offering to its operating partnership in exchange for common units of limited partnership interest in the operating partnership. The company's operating partnership intends to use the net proceeds of the offering to repay debt under its senior secured revolving credit facility and to invest in additional hotel properties in accordance with Chatham's investment strategy and for general corporate purposes.

The common shares were offered under the company's existing shelf registration statement, which was declared effective by the Securities and Exchange Commission on February 10, 2012. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Barclays and UBS Investment Bank are acting as joint book-running managers for the offering, and Stifel and FBR Capital Markets are acting as senior co-managers. Baird, Credit Agricole CIB, JMP Securities, Piper Jaffray and SunTrust Robinson Humphrey are acting as co-managers. A copy of the prospectus can be obtained by contacting Barclays c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717,, (888) 603-5847 or by contacting UBS Investment Bank, Attention: Prospectus Dept., 299 Park Avenue, New York, NY 10171, (888) 827-7275.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised real estate investment trust that was organized to invest in upscale extended-stay hotels and premium-branded select-service hotels. The company currently owns 21 hotels with an aggregate of 2,911 rooms/suites in eleven states and the District of Columbia.

Posted-In: News Offerings


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