Bluerock greenshoe exercise lifts 7.625% preferreds to $57.5 million

By Angela McDaniels

Tacoma, Wash., July 19 – The underwriters of Bluerock Residential Growth REIT Inc.’s 7.625% series C cumulative redeemable preferred stock offering exercised their $7.5 million over-allotment option in full, increasing the size of the offering to $57.5 million, according to a company news release.

As previously reported, the company priced $50 million of the preferreds on July 12.

The preferreds have been approved for listing on the NYSE MKT under the symbol “BRG-PrC.” Trading is expected to begin Thursday.

Janney Montgomery Scott LLC, D.A. Davidson & Co. and FBR Capital Markets were the joint bookrunners.

The dividend will increase by 200 basis points on July 19, 2023 and then by 200 bps annually, up to a maximum of 14%.

The company can redeem the issue beginning July 19, 2021, upon a change of control or in order to remain in compliance with a 200% asset coverage ratio. Holders have a put option beginning July 19, 2023. In each event, the redemption price is par plus accrued dividends.

The New York-based real estate investment trust will use the proceeds for future investments and acquisitions and for other general corporate purposes and working capital needs.

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