By Colin Hanner
Chicago, March 6 – Monmouth Real Estate Investment Corp. priced a $75 million add-on to its 6.125% series C cumulative redeemable preferred stock on Monday evening, according to a press release.
The REIT priced 3 million shares of the redeemable preferreds with a liquidation preference of $25 per share at $24.50 per share.
Underwriters have a 30-day option to purchase 450,000 additional shares.
The deal is expected to close on March 9.
RBC Capital Markets, LLC, BMO Capital Markets Corp. and J.P. Morgan Securities LLC are the joint bookrunners.
The company priced $135 million, of 5.4 million shares, of the preferreds at par on Sept. 6, 2016.
Dividends will be payable on the 15th day of March, June, September and December, beginning Dec. 15. The preferreds become redeemable in 2021 or upon a change of control at par plus accrued dividends.
The preferreds can also be converted to common stock in the event of a change of control or a delisting event.
Monmouth plans to use the net proceeds to redeem outstanding shares of its 7.875% series B cumulative redeemable preferred stock, as well as to reduce the outstanding amount under its unsecured revolving credit facility, to purchase properties and fund expansions of existing properties and for general corporate purposes, a news release said.
The preferred shares are traded on the New York Stock Exchange under the symbol “MNRPRC.”
Monmouth is a public equity REIT specializing in single-tenant, net-leased industrial properties, subject to long-term leases, primarily to investment grade tenants.
| Issuer: | Monmouth Real Estate Investment Corp.
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| Securities: | Series C cumulative redeemable preferred stock
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| Amount: | $75 million reopening, or 3 million shares
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| Greenshoe: | For 450,000 additional shares
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| Maturity: | Perpetual
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| Bookrunners: | RBC Capital Markets, BMO Capital Markets, J.P. Morgan Securities LLC
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| Co-managers: | Wunderlich Securities Inc., Janney Montgomery Scott LLC, D.A. Davidson & Co.
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| Dividend: | 6.125%
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| Price: | $24.50 per share
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| Call options: | In 2021 or upon a change of control at par plus accrued dividends
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| Pricing date: | March 6
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| Settlement date: | March 9
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| Listing: | NYSE: MNRPC
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| Total outstanding: | $210 million
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