Condor Hospitality sells $30 million of preferred stock to affiliate of Stepstone Group (3/17/16)
By Steve Jordon
Norfolk, Nebraska, lodging company Condor Hospitality Trust said Wednesday it sold $30 million worth of preferred stock to StepStone Real Estate, an affiliate of StepStone Group, with a payment rate of 6.25 percent a year.
Condor said the preferred shares may be converted into common stock at $1.60 per share. Condor’s stock price closed Wednesday at 95 cents per share.
Brendan MacDonald, a StepStone partner, and two other people designated by StepStone have joined Condor’s board of directors.
MacDonald said the investment comes “at what we believe is a turning point for the company and its shareholders.” Condor, previously called Supertel Hospitality Trust, has recorded losses in recent years and struggled to compete with other hotel and motel operators.
Bill Blackham, Condor’s chief executive, said the transaction will support the company’s strategic plan for the future. Part of the $30 million will go to redeem other preferred stock and part toward the company’s plan to acquire higher-level hotels and sell lower-quality properties.
The company also exchanged all its preferred stock into a single class, simplifying Condor’s finances, said Jonathan Gantt, chief financial officer.
StepStone is a private equity firm that manages $14 billion in real estate and other assets, with offices in China, England, Australia, Brazil, South Korea and the United States. http://www.omaha.com/money/condor-hospitality-sells-million-of-preferred-stock-to-affiliate-of/article_aec8d95d-41d0-56da-a998-8b58d61c098e.html