SOURCE: Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc.

April 18, 2016 08:00 ET

Condor Hospitality Trust Completes Redemption of Series A and B Preferred Stock

NORFOLK, NE--(Marketwired - April 18, 2016) - Condor Hospitality Trust, Inc. (NASDAQ: CDOR) (the "Company"), a hotel-focused real estate investment trust (REIT), today announced that on Friday, April 15, 2016, it completed the cash redemption of all of its outstanding shares of 8% Series A Cumulative Preferred Stock (NASDAQ: CDORP) (CUSIP No. 20676Y205) and 10% Series B Cumulative Preferred Stock (NASDAQ: CDORO) (CUSIP No. 20676Y304), including all accrued and unpaid dividends.

The aggregate redemption price was approximately $20.1 million, an amount that was funded using proceeds from the Company's previously announced $30.0 million private placement transaction with StepStone Real Estate, an affiliate of the StepStone Group. 

"The completion of the redemption of the Series A and B preferred stock, combined with the conversion of the former Series C preferred stock into the new Series D preferred shares created for the conversion and the StepStone investment, results in a greatly simplified capital structure now with only one class of preferred stock that automatically converts into Condor common stock upon a qualified equity offering," said Bill Blackham, Condor's Chief Executive Officer. "Until that occurs, the preferred dividend rate is 6.25% which is considerably lower than the 8% and 10% preferred dividend rate on the former Series A and Series B preferred shares."

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NASDAQ: CDOR) is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded select-service, extended-stay and limited-service hotels. The Company currently owns 38 hotels in 18 states. Condor's hotels are franchised by a number of the industry's most well-regarded brand families including Hilton, Marriott, InterContinental Hotels Group, Choice and Wyndham. For more information, or to make a hotel reservation, visit www.condorhospitality.com.

Forward Looking Statement

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the Company's filings with the Securities and Exchange Commission.

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