IPO Proceeds of $342.3 million; Organized to Take
Advantage of Lodging Investment Opportunities
|MCLEAN, VA. -- December 15, 2003 -- Highland Hospitality Corporation
(NYSE: HIH) today announced the pricing of an initial public offering of
30,000,000 shares of its common stock at $10.00 per share, all of which
were offered by Highland Hospitality. The shares will trade on the
New York Stock Exchange under the symbol “HIH.” In addition, Highland Hospitality
has agreed to sell approximately 4,550,000 shares of common stock through
private issuances. Friedman, Billings, Ramsey & Co., Inc. acted
as the sole book-running manager, with Deutsche Bank Securities Inc. acting
as co-lead manager and Raymond James & Associates, Inc. as a co-manager
of the public offering. Highland Hospitality has agreed to sell up to an
additional 4,500,000 common shares to the underwriters to cover over-allotments,
Total gross proceeds from the offering and private issuances of approximately $342.3 million will be used principally to fund the acquisition of seven initial hotel properties, fund the renovations for two of the initial properties, fund future lodging-related investments and for general corporate and working capital purposes.
Highland Hospitality is a self-administered real estate investment trust focused primarily on investing in the United States within the upscale full-service and premium limited-service and extended stay lodging segments. Over time, Highland Hospitality may also pursue investment opportunities in certain lodging segments outside of the United States.
The registration statement relating to the initial public offering of common stock has been declared effective by the Securities and Exchange Commission. 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 such common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering of these securities will be made only by means of a prospectus, copies of which may be obtained from Friedman, Billings, Ramsey & Co., Inc., 1001 19th Street North, Arlington, Virginia, 22209.
The shares of common stock that Highland Hospitality has agreed to sell through private issuances have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
|Also See:||Smaller than Anticipated IPO Raised $202.5 million for Ashford Hospitality Trust / August 2003|