Pennsylvania REIT greenshoe exercised, ups preferreds to $115 million

By Tali David

Minneapolis, April 20 - Pennsylvania Real Estate Investment Trust said the $15 million over-allotment option on its offering of 8.25% series A cumulative redeemable perpetual preferred stock was exercised in full, increasing the offering by 600,000 shares.

The company will sell a total of 4.6 million preferreds with a liquidation preference of $25 each for a total of $115 million, according to a press release.

The deal is expected to generate net proceeds of about $110.7 million.

As previously reported, dividends are payable on the 15th day of March, June, September and December beginning June 15.

The preferreds will be redeemable on or after April 20, 2017 or upon a change of control.

There is no stated maturity, and the preferreds are not subject to any sinking fund or mandatory redemption.

Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and Bank of America Merrill Lynch are the joint bookrunners.

Proceeds will be used to repay amounts outstanding under the company's revolving credit facility and other debt and for other general corporate purposes.

The issuer is a Philadelphia-based REIT with a primary investment focus on retail shopping malls.

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