Bluerock will redeem preferred stock due to change of control

By William Gullotti

Buffalo, N.Y., Dec. 21 – Bluerock Residential Growth REIT, Inc., as part of a merger agreement with affiliates of Blackstone Inc., will deliver a notice of redemption to the holders of four series of its preferred stock, according to a form 8-K filed with the Securities and Exchange Commission.

The holders of the series B redeemable preferred stock will be redeemed at $1,000 plus an amount equal to all accrued and unpaid dividends to and including the redemption date.

The holders of the following series will be redeemed at par of $25 plus accrued and unpaid dividends up to and including the redemption date:

• All 7.625% series C cumulative redeemable preferred stock;

• All 7.125% series D cumulative preferred stock; and

• All series T redeemable preferred stock.

The redemption date is the effective date of the merger.

The outstanding warrants to purchase class A common stock will remain outstanding following the effective time of the merger, but the exercise price will be adjusted so that the warrantholders will be entitled to receive in cash $24.25 in cash. Likewise, outstanding shares of the restricted class A common stock will be canceled in exchange for a cash payment equal to $24.25 per share without interest.

Bluerock is a New York-based real estate investment trust. Blackstone announced on Monday that it is buying Bluerock REIT for $3.6 billion.

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