DALLAS, Oct. 15, 1998 - PMC Commercial Trust (Amex: PCC)
today announced that the PCC Board of Trust Managers and the Supertel Hospitality,
Inc. (Nasdaq: SPPR) Board of Directors have voted to terminate the merger
agreement between the two companies. A definitive agreement had been signed
in June to merge Supertel into PCC. Each share of Supertel common stock
was to be exchanged for 0.6 common shares of PCC unless PCC shares traded
below $17.50, which could have required the issuance of additional shares
in order for Supertel to have been obligated to consummate the merger.
Andrew S. Rosemore, PCC's Chairman, stated, "Adverse market conditions
have led to a general decline in the stock values of real estate investment
trusts over the past several months. When we announced the merger, we believed
that this transaction would add significant value to our shareholders'
investment; however, market conditions have changed. We continue to have the
highest regard for Paul Schulte and the management team of Supertel and
wish them continued success." Rosemore went on to say that, "We intend
to continue to diversify our investment portfolio by taking advantage of
attractive real estate acquisition opportunities when those opportunities
present themselves.
PCC recently completed the purchase of 26 Amerihost properties. This
transaction was primarily financed utilizing the proceeds from a $66.1
million, 6.37% structured financing collateralized by a loan portfolio
which was rated 'Aaa' by Moody's."
PCC's President, Lance B. Rosemore, stated, "We believe that PCC is
well positioned to continue growth by expanding its portfolio of mortgages
and investment properties. With the payment of our $0.45 dividend earlier
this week, PCC has now increased dividends for sixteen consecutive quarters,
a 7% cumulative increase over the past twelve months. We believe that our
fundamental business and our financial position remains sound. Loan demand
is strong and delinquency remains at very low levels."
PMC Commercial Trust is a Dallas-based real estate investment
trust which originates loans to small businesses secured by real estate
and owns a portfolio of 26 Amerihost hotel properties.Certain statements
that appear in this press release can be construed as forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. These
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those set forth in the forward-looking
statements. These forward-looking statements can be identified as such
because the context of the statements will include words such as "expects",
"anticipates", "believes" or "intends". |