Terms

Series

Series A Cumulative Convertible Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

7.8%

Rate Type

Fixed

Annual Dividend

$1.95

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

No

Capital Stack Ranking

Junior To: All Debt Obligations Of Rlj And Its Subsidiaries; Senior To: Rlj Common Shares

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

RLJ Lodging Trust, a Maryland REIT, is issuing newly created Series A Cumulative Convertible Preferred Shares (par value $0.01) as merger consideration to holders of FelCor Lodging Trust's $1.95 Series A Cumulative Convertible Preferred Stock on a one-for-one exchange basis pursuant to the April 2017 merger agreement. The RLJ Series A is designed to mirror FelCor's Series A terms, suggesting a fixed annual dividend of approximately $1.95 per share. Because the preferred is cumulative, any missed dividend payments accrue and must be paid in full before dividends can be paid to common shareholders. The RLJ Series A Preferred Shares sit above RLJ common shares in the capital stack but are structurally subordinate to all debt obligations of RLJ Lodging Trust, L.P. (the Operating Partnership) and its subsidiaries. As RLJ is a holding company whose assets and operations are conducted through the Operating Partnership, preferred holders face structural subordination risk — all operating debt resides below them at the subsidiary level and must be satisfied first in any liquidation scenario. The prospectus does not describe a regulatory capital call provision, consistent with RLJ's REIT (non-bank) structure. The indicated annual dividend is approximately $1.95 per share, implying a yield dependent on the liquidation preference, which is not explicitly stated in this document. As dividends from a REIT, these payments are generally classified as ordinary income (not eligible for the 15%/20% qualified dividend income rate for individual investors, nor the dividends-received deduction for corporate holders), unless RLJ designates a portion as capital gain or return of capital distributions. Specific payment dates, record date conventions, and dividend stopper mechanics are not detailed in this proxy statement/prospectus and would be set forth in the articles supplementary governing the RLJ Series A Preferred Shares.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Other Preferreds from RLJ Lodging Trust $1.95 Series A Cumulative Convertible Preferred Shares

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 38 (Weak)