Braemar Hotels and Resorts (NYSE:BHR) will be selling a new perpetual preferred issue.
It has been quite some time since we have had an issue come to market from the REIT lodging sector so it will be interesting to see what the issue is priced at coupon wise.
Proceeds will be used for the purchase of a property in the Lake Tahoe area.
All the terms of the issue will be the normal terms with an optional redemption in 5 years, cumulative dividend, NON qualified for preferential tax treatment etc.
The company currently has 1 convertible preferred outstanding (BHR-B) with a coupon of 5.5% which is trading at $17.80/share right now.
The new issue will be unrated–thus junk.