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DiamondRock To Raise $178M in Public Offering

BETHESDA, MD-DiamondRock Hospitality Co. files a registration statement with the SEC to sell 14 million shares of common stock in a public offering. The company expects the net proceeds to be nearly $178 million.

By Barbra Murray, Barbara Jarvie | Updated on March 08, 2006

(To read more on the debt and equity markets, click here.)

BETHESDA, MD-DiamondRock Hospitality Co. filed a registration statement with the SEC for the sale of 14 million shares of company common stock in a public offering. In its SEC filing, DiamondRock reports that it expects to see net proceeds of about $177.7 million. In the event that the underwriters’ over-allotment option is exercised, the total could be $204.5 million.

As reported by GlobeSt.com yesterday DiamondRock inked a purchase agreement to acquire the 1,192-room Chicago Marriott Downtown Magnificent Mile for $295 million, plus approximately $11 million of net consideration in the form of an assumed property tax liability and other adjustments including the assumption of $220 million of floating-rate debt. It works out to approximately $257,000 per room.

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