By Stephanie N. Rotondo
Phoenix, Oct. 2 - Pennsylvania Real Estate Investment Trust priced $86.25 million of new 7.375% series B cumulative redeemable perpetual preferred stock, the company said in a press release Tuesday.
Price talk was originally 7.5% to 7.625%, according to a trader.
Dividends will be payable quarterly on the 15th day of March, June, September and December, beginning Dec. 17.
The new series of preferreds will become redeemable on or after Oct. 11, 2017 or in the event of a change of control.
The company will apply to list the preferreds on the New York Stock Exchange under the ticker symbol "PEIPB." Settlement is expected Oct. 11.
Joint bookrunners are Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Bank of America Merrill Lynch. Joint lead managers are J.P. Morgan Securities LLC and Stifel, Nicolaus & Co. Inc.
Proceeds will be used to repay amounts outstanding under the company's 2010 credit facility and for general corporate purposes.
PREIT is a Philadelphia-based real estate investment trust.
| Issuer: | Pennsylvania Real Estate Investment Trust
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $86.25 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch
|
| Lead managers: | J.P. Morgan Securities LLC, Stifel, Nicolaus & Co. Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, Mitsubishi UFJ Securities (USA) Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc.
|
| Dividend: | 7.375%, payable quarterly beginning Dec. 17
|
| Price: | Par of $25.00
|
| Yield: | 7.375%
|
| Call option | On or after Oct. 11, 2017 or in the event of a change of control
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 11
|
| Expected listing: | NYSE: PEIPB
|
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