Shares of Hospitality Properties Trust (HPT) tumbled a day after the real estate investment trust said it would sell 15 million shares in a public offering and use the proceeds to repay debt.
Late on Wednesday, the company said it expected to grant underwriters a 30-day option to buy up to an additional 2.3 million shares to cover overallotments, if any. Investors proceeded to turn away from Hospitality Properties as the offering would increase the shares outstanding by as much as 16%.
Hospitality Properties were down nearly 11% to $11.86 at noon on the New York Stock Exchange after touching an intraday low of $11.80 earlier in the session.
“HPT” Free Stock Analysis: Buy? Sell? Hold?
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