Boston, MA 06/03/2014 (wallstreetpr) – Strategic Hotels & Resorts, Inc. (NYSE:BEE), announced today that it is increasing its guidance range for the complete year 2014. The decision to raise the range of its Comparable EBITDA and Comparable FFO per fully diluted share is aimed to reflect the true closing price of the company’s common equity offering, the acquisition of its outstanding stake of 63.6 percent in the Hotel del Coronado that is expected to conclude by as early as June, as well as the redemption of its 8.25% Series C Preferred Stock, that is slated to complete by July.
To Float IPO
In the meanwhile, the company is gearing up for its Initial Public Offering of nearly 36,000,000 shares. On 28th May 2014, Strategic Hotels & Resorts, Inc. (NYSE:BEE). declared to issue 36,000,000 shares through a public offering and priced it at the rate of $10.50 per share. JPMorgan, Deutsche Bank, BofA Merrill Lynch etc. are engaged as joint book running managers for the issue. Raymond James is retained as the lead manager while BMO Capital Markets, Capital One Securities, Evercore, JMP Securities, MLV & Co. and others will act as the co-managers for the issue.
The underwriters have been given a 30-day window to make an additional purchase of up to 5,400,000 common shares.The company hopefully expects net income of approximately $362.4 million to $416.8 million from the offering, post calculating underwriting discounts,commissions and other expenses.
Closure Of Loan
During the last week, the company had also reported to have extinguished its outstanding liability attached with the $120.0 million limited recourse loan, financed by the Wells Fargo Bank. The loan was guaranteed by the Loews Santa Monica Beach Hotel. The loan was taken on an interest rate of LIBOR plus 255 basis points on floating basis It was financed by Wells Fargo Bank.
Strategic Hotels & Resorts, Inc. (NYSE:BEE) is a real estate investment trust (REIT) that manages assets of premier hotels and resorts in Europe and the United States.
