Urstadt Biddle launches offering of cumulative redeemable preferreds; price talk 6.625%-6.875%

By Stephanie N. Rotondo

Phoenix, Oct. 21 – Urstadt Biddle Properties Inc. is looking to raise up to $61.25 million from a sale of series G cumulative redeemable perpetual preferred stock, the company said in a press release on Tuesday.

Price talk is 6.625% to 6.875%, according to a market source.

BMO Capital Markets is the bookrunner. Deutsche Bank Securities Inc. and Stifel Nicolaus & Co. are the joint lead managers. Co-managers include J.J.B. Hilliard, W.L. Lyons, LLC, Wunderlich Securities and BNY Mellon Capital Markets LLC.

Dividends will be payable on the last day of January, April, July and October. The preferreds can be redeemed on or after October 2019 at par plus accrued dividends.

The company can also redeem the preferreds prior to that date at par plus a make-whole premium. The make-whole premium equals all accrued and unpaid dividends up to the redemption date, plus all dividends that would have accrued through October 2019 discounted by Treasuries plus 50 basis points.

There is also a change-of-control feature.

The Greenwich, Conn.-based real estate investment trust plans to list the new securities on the New York Stock Exchange under the ticker symbol “UBPPG.”

Proceeds will be used for general corporate purposes, which may include the repayment of debt, funding capital improvements and acquisitions.

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