March 1, 2010 / 9:50 PM / 8 years ago

UPDATE 1-LaSalle Hotel to sell 5.4 mln shares

March 1 (Reuters) - Lodging real estate investment trust LaSalle Hotel Properties (LHO.N) said it plans to sell about 5.4 million common shares in a public offering and use part of the proceeds to repay debt.

The company said net proceeds from the offering would be used to reduce amounts outstanding under its senior unsecured credit facility and under the unsecured credit facility of the company’s taxable REIT subsidiary, LaSalle Hotel Lessee Inc.

LaSalle, which earlier in the day said it had acquired the Sofitel Washington, DC Lafayette Square for $95 million, said it plans to grant the underwriters an option to purchase up to an additional 802,500 common shares to cover overallotments.

Raymond James and Deutsche Bank Securities are acting as joint book-running managers for the offering, the company said in a statement.

Shares of the company fell 2 percent to $18.74 in extended trade. They closed at $19.11 Monday on the New York Stock Exchange. (Reporting by Abhishek Takle in Bangalore; Editing by Ratul Ray Chaudhuri)

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