Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - PebbleBrook Hotel Trust (NYSE:PEB), a $1.4 billion market cap hotel REIT currently trading at $11.96, maintained its $11.00 price target as Truist Securities reiterated its Hold rating. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate.
The rating confirmation follows PebbleBrook’s announcement of a $400 million convertible notes offering due 2030, which will be used to partially retire its $750 million convertible notes due 2026.
The new 2030 notes carry a 1.625% interest rate, slightly lower than the 1.75% rate on the 2026 notes being partially retired.
PebbleBrook is also repurchasing 4.3 million shares at $11.56, which was the closing price from the previous trading session.
The company has implemented privately negotiated capped calls providing dilution protection up to $20.23 per share, and with the $50 million repurchase activity, the effective all-in equity conversion price of the new notes is $24.43 per share.
In other recent news, Pebblebrook Hotel Trust reported its second-quarter 2025 earnings, showing a mixed performance. The company posted an earnings per share (EPS) of $0.06, which was below the forecasted $0.07. However, it surpassed revenue expectations with $407.54 million against the anticipated $398.34 million. Additionally, Pebblebrook Hotel Trust priced a private offering of $400 million in convertible senior notes due 2030, which includes an initial $350 million and an additional $50 million following the exercise of an over-allotment option. The company expects net proceeds of approximately $389.7 million from this offering. The proceeds are intended to repurchase certain 1.75% Convertible Senior Notes due 2026 and approximately $50 million of common shares. Analyst firms have also adjusted their price targets for Pebblebrook, with Stifel raising its target to $14 while maintaining a Buy rating, and Truist Securities increasing its target to $11 while maintaining a Hold rating. Truist Securities also raised its 2025 Adjusted EBITDAre forecast to $342 million and its AFFO per share estimate to $1.55.
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