Supertel Hospitality to price rights offering of 6,648,286 shares

Company will offer one subscription right for every common share held

By Devika Patel

Knoxville, Tenn., Feb. 12 - Supertel Hospitality Inc. plans a rights offering, according to a Form S-11 filed Wednesday with the Securities and Exchange Commission.

The company will offer rights for up to 6,648,286 common shares. Investors will receive one subscription right for every common share held.

Real Estate Strategies, LP, the sole holder of the company's 6.25% series C cumulative convertible preferred stock, will receive 3.75 million subscription rights, which is equal to the number of common shares into which the preferreds are convertible.

Proceeds will be used for debt repayment and general corporate and working capital purposes.

The real estate investment trust is based in Norfolk, Neb.

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