Preferred Apartment Communities extends closing preferreds one year

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – Preferred Apartment Communities Inc.’s board of directors approved extending the closing date of its $500 million series M redeemable preferred stock offering to Dec. 2, 2019 from Dec. 2, 2018 and its $1.5 billion series A redeemable preferred stock and warrant offering to Feb. 14, 2020 from Feb. 14, 2019.

The changes were announced in a news release on Friday.

The company announced in December 2016 that it was selling up to $500 million of 5.75% $1,000-par series M redeemable preferred stock via a best-efforts offering.

The deal was to continue until Dec. 2, 2018, but included an option to extend it for another year.

Preferred Capital Securities LLC is the dealer manager.

The dividend will increase by 0.25% at the one-year anniversary of issuance and every year thereafter until hitting the 7.5% ceiling.

Dividends will be payable monthly.

In the first year after issuance, the preferreds are putable at par, less a 2% redemption fee. In the second year, the issue is putable at par, less a 1% fee.

In the third year, the issue is putable at par plus accrued dividends.

After the 10-year anniversary, the company can redeem the issue at par plus accrued dividends.

Proceeds will be used in connection with the acquisition of multifamily properties and other real estate-related investments, including grocery-anchored shopping centers, and for general working capital purposes.

Preferred Apartment Communities is an Atlanta-based real estate investment trust.

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