07:52 AM EDT, 09/17/2025 (MT Newswires) -- Pebblebrook Hotel Trust ( PEB ) said it has priced a private offering of $350 million in 1.625% convertible senior notes due 2030.

The new notes will pay interest semiannually at 1.625% and mature on Jan. 15, 2030. They will initially be convertible at 62.9129 shares per $1,000 principal amount, equivalent to about $15.89 per share.

Pebblebrook said initial purchasers exercised in full their option to buy an additional $50 million of the notes and it expects to raise $389.7 million in net proceeds, which the company plans to use along with $4.1 million of cash on hand to redeem about $400 million of its outstanding 1.75% convertible senior notes due 2026.

The company also entered into capped call transactions that can reduce the potential dilution, with an initial cap price of $20.23 per share.

The offering is expected to close Thursday.