By Stephanie N. Rotondo
Phoenix, Oct. 22 – Urstadt Biddle Properties Inc. priced $70 million of 6.75% series G cumulative redeemable perpetual preferred stock, the company said in a press release on Wednesday.
BMO Capital Markets is the bookrunner. Deutsche Bank Securities Inc. and Stifel Nicolaus & Co. are the joint lead managers.
Dividends will be payable on the last day of January, April, July and October.
The preferreds can be redeemed on or after Oct. 28, 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 Oct. 28, 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.
| Issuer: | Urstadt Biddle Properties Inc.
|
| Securities: | Series G cumulative redeemable preferred stock
|
| Amount: | $70 million, or 2.8 million shares
|
| Greenshoe: | $5 million, or 200,000 shares
|
| Maturity: | Perpetual
|
| Bookrunner: | BMO Capital Markets
|
| Lead managers: | Deutsche Bank Securities Inc., Stifel Nicolaus & Co.
|
| Co-managers: | J.J.B. Hilliard, W.L. Lyons, LLC, Wunderlich Securities, BNY Mellon Capital Markets LLC
|
| Dividend: | 6.75%
|
| Price: | Par of $25.00
|
| Yield: | 6.75%
|
| Talk: | 6.625% to 6.875%
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| Call options: | Prior to Oct. 28, 2019 at par plus accrued dividends plus a make-whole premium; after Oct. 28, 2019 at par plus accrued dividends; or upon a change of control
|
| Make-whole premium: | Accrued dividends through redemption date, plus all dividends that would have accrued through Oct. 28, 2019 discounted by Treasuries plus 50 bps
|
| Pricing date: | Oct. 22
|
| Settlement date: | Oct. 28
|
| Expected listing: | NYSE: UBPPG
|
| Cusip: | 917286809
|
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