Published on 1/18/2017 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Pennsylvania REIT prices upsized $150 million 7.2% cumulative preferreds at par
By Stephanie N. Rotondo
Seattle, Jan. 18 – Pennsylvania Real Estate Investment Trust priced $150 million of 7.2% series C cumulative redeemable perpetual preferred stock on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
Initial price talk was in a 7.375% area, according to a market source. The deal came upsized from $75 million.
There is a $22.5 million over-allotment option.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies, J.P. Morgan Securities LLC and Stifel Nicolaus & Co. Inc. are the joint bookrunners.
The preferreds become redeemable on or after Jan. 27, 2022 at par plus accrued dividends. The company can also opt to redeem the issue upon a change of control.
The Philadelphia-based REIT plans to use the proceeds to repay all or a portion of amounts outstanding under a 2013 revolving credit facility. Any remaining funds will be used for general business purposes, including the possible redemption of some or all of the 8.25% series A cumulative redeemable preferreds (NYSE: PEIPrA.)
| Issuer: | Pennsylvania Real Estate Investment Trust
|
| Securities: | Series C cumulative redeemable preferred stock
|
| Amount: | $150 million, or 6 million shares
|
| Greenshoe: | $22.5 million, or 900,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies, J.P. Morgan Securities LLC, Stifel Nicolaus & Co. Inc.
|
| Co-managers: | Boenning & Scattergood Inc., BB&T Capital Markets, Canaccord Genuity Inc., Capital One Securities Inc., MUFG, TD Securities (USA) LLC, U.S. Bancorp Investments Inc.
|
| Dividend: | 7.2%
|
| Price: | Par of $25.00
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| Yield: | 7.2%
|
| Talk: | 7.375% area
|
| Call option: | On or after Jan. 27, 2022 at par plus accrued dividends
|
| Optional redemption: | At par plus accrued dividends upon a change-of-control, at the issuer’s option
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 27
|
| Expected listing: | NYSE: PEIPrC
|
| Cusip: | 709102602
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