BHR - Braemar Hotels stock drops after $86.25M placement of convertible notes

Braemar Hotels & Resorts (BHR) stock tumbles 7.0% in after-hours trading after the REIT announces a private placement of $86.25M of 4.5% convertible senior notes.That amount includes $11.25M of notes sold on the exercise of the initial purchaser's option to buy additional notes.The notes pay interest semi-annually at a rate of 4.5% per year. They'll be convertible for cash, shares of common stock, or a combination of the two, at Braemar's option.The initial conversion price is ~$6.34 per share of the company's common stock.Braemar used some of the net proceeds to repay the amount outstanding under its secured term loan and expects to use the rest for general corporate purposes, including, but not limited to, capital expenditures or potential acquisitions.The company priced the offering last week.

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Braemar Hotels stock drops after $86.25M placement of convertible notes