By Sheri Kasprzak
Atlanta, Feb. 25 - First Union Real Estate Equity and Mortgage Investments said it will raise $90,998,000 in a private placement.
The offering includes 3.46 million shares of B-1 cumulative convertible redeemable preferred shares at $26.30 each sold to a small group of institutional investors.
The preferreds are convertible into common shares at $4.50 each and pay annual dividends at a rate of at least 6.5%.
If the preferreds are fully converted, the shares will represent 38.7% of the company's outstanding stock.
A call requesting further details was not returned.
Boston-based First Union Real Estate Equity and Mortgage Investments is a real estate investment trust.
| Issuer: | First Union Real Estate Equity and Mortgage Investments
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| Issue: | B-1 cumulative convertible redeemable preferred stock
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| Amount: | $90,998,000
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| Shares: | 3.46 million
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| Price: | $26.30
|
| Dividend: | 6.5% (minimum)
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| Conversion price: | $4.50
|
| Warrants: | No
|
| Pricing date: | Feb. 25
|
| Stock price: | $4.23 at close Feb. 24
|
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