Pebblebrook Hotel Trust announced the closing on September 18, 2025, of its private offering of $400 million aggregate principal amount of 1.625% Convertible Senior Notes due 2030. This included the full exercise of the initial purchasers' over-allotment option.
The Company utilized the net proceeds from this offering, along with approximately $4.1 million of cash on hand, to repurchase approximately $400.0 million aggregate principal amount of its outstanding 1.75% Convertible Senior Notes due 2026 in private transactions. This strategic move effectively refinances existing debt and extends maturities.
In addition to the debt repurchase, Pebblebrook also repurchased approximately 4.3 million common shares at a price of $11.56 per share. These share repurchases were conducted through privately negotiated transactions as part of the Company's existing common share repurchase program, reinforcing its commitment to shareholder value.
The overall transaction strengthens the Company's balance sheet by managing debt obligations and returning capital to shareholders, while the capped call transactions are expected to mitigate potential dilution from the convertible notes.
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