PS Business Parks plans sale of cumulative perpetual preferreds

By Stephanie N. Rotondo

Portland, Ore., Jan. 9 - PS Business Parks Inc. plans to sell at least $100 million of series S cumulative redeemable perpetual preferred stock.

Price talk is around 6.5%, according to a market source. He noted that it is a "small deal with a small selling group."

The preferreds will be issued as depositary shares each representing 1/1,000th of a preferred with a liquidation preference of $25 per depositary share, according to a prospectus filed with the Securities and Exchange Commission on Monday.

Dividends will be payable quarterly beginning March 31.

The company can redeem the preferreds beginning in January 2017 at par plus accrued dividends.

There is no stated maturity and no sinking fund or mandatory redemption clause.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used for general corporate purposes, including the repayment of outstanding debt, the redemption of preferred securities and the acquisition of commercial properties.

PS Business intends to list the preferreds on the New York Stock Exchange under the ticker symbol "PSBPS."

The real estate investment trust is based in Glendale, Calif. It acquires and operates commercial properties.

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