Prospectus excerpt: Hersha Hospitality Trust is offering 4,000,000 shares of its 8.00% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest, $0.01 par value per share, which we refer to in this prospectus supplement as the Series B Preferred Shares.
We will pay quarterly cumulative dividends, in arrears, on the Series B Preferred Shares from the date of original issue, payable on or about January 15th, April 15th, July 15th and October 15th of each year, when and as declared, beginning on July 15, 2011, at a yearly rate of 8.00% of the $25.00 liquidation preference, or $2.00 per Series B Preferred Share per year. The first dividend payment will be for less than a full quarter and will cover the period from May 18, 2011 to June 30, 2011.
Generally, we may not redeem the Series B Preferred Shares until May 18, 2016. On and after May 18, 2016, we may, at our option, redeem the Series B Preferred Shares, in whole or in part, by paying $25.00 per share, plus all accrued and unpaid dividends to the redemption date. In addition, upon the occurrence of a Change of Control (as defined herein), we may, at our option, redeem the Series B Preferred Shares, in whole or in part and within 120 days after the first date on which such Change of Control occurred, by paying $25.00 per share, plus all accrued and unpaid dividends to the redemption date. If we exercise any of our redemption rights, holders of the Series B Preferred Shares will not have the conversion rights described below. The Series B Preferred Shares have no maturity date and will remain outstanding indefinitely unless redeemed by us or converted in connection with a Change of Control by holders of the Series B Preferred Shares.