SOHO - Sotherly Hotels issues senior notes in $20M financing

Sotherly Hotels (SOHO) enters a note purchase agreement with affiliates of Kemmons Wilson Hospitality Partners LP and Machine Investment Group for the issuance of $20M of notes, with an additional $10M available to draw within the next twelve months at SOHO's option.The note matures in three years and will be payable on or before the maturity date at the rate of 1.47x the principal amount borrowed during the initial three-year term, with a one-year extension at the company's option.The note also carries a 6.0% current interest rate, payable quarterly during the initial three-year term.SOHO plans to use the net proceeds to enhance its liquidity position."This transaction further positions Sotherly to be able to focus on the impending recovery, manage its balance sheet obligations, and preserve its asset base," said Sotherly CEO Dave Folsom.

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Sotherly Hotels issues senior notes in $20M financing