Preferred Apartment Communities to suspend redemptions of preferreds after June 2

By Mary-Katherine Stinson

Lexington, Ky., May 23 – Preferred Apartment Communities, Inc., in connection with its previously announced acquisition by Blackstone Real Estate Income Trust, Inc., announced that it will suspend voluntary redemptions of series A, series A1, series M and series M1 redeemable preferred stock after June 2, according to a press release.

Additionally, the company will be suspending the exercise of all warrants after June 2.

The company will be suspending the redemptions and warrants to obtain an accurate count of securities and to facilitate payment to the stockholders because of the previously announced merger agreement with, among others, the company and Pike Parent LLC, an affiliate of Blackstone.

Any voluntary redemptions submitted on or before June 2 will be paid in cash by June 6. Any warrants submitted before the cut-off will also be processed by June 6.

The acquisition is still subject to stockholder approval at the company’s upcoming special meeting and is expected to close on or about June 9.

On or about the closing date of the transaction, holders of outstanding preferred shares will be paid par of $1,000 per share plus accrued but unpaid dividends through and including the closing date, minus applicable withholding taxes.

Beginning on the closing date, the holders of warrants may exercise them in accordance with their terms pursuant to a cashless exercise. Holders who do so shall receive a cash payment of $25 per share of common stock underlying the exercised warrants without interest and minus applicable withholding taxes and the exercise price.

Preferred Apartment Communities is an Atlanta-based real estate investment trust.

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