By Stephanie N. Rotondo
Portland, Ore., May 3 - PS Business Parks Inc. priced a $350 million offering of 6% series T cumulative perpetual preferred stock, according to an FWP filing with the Securities and Exchange Commission on Thursday.
The deal was originally expected to be a $100 million issue at 6.125%. Traders later said that the deal was upsized to $200 million and pricing tightened to 6%.
There is a $52.5 million over-allotment option.
Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc. and RBC Capital Markets LLC are the co-managers.
The preferreds will be issued as depositary shares representing a 1/1,000th interest in a preferred. The liquidation preference is $25,000 per preferred, or $25 per depositary share.
Dividends will be payable quarterly on the last day of March, June, September and December beginning June 30. The preferreds become redeemable May 14, 2017.
The company will apply to list the preferreds on the New York Stock Exchange under the ticker symbol "PSBPT." Settlement is expected May 14.
The joint bookrunners subscribed for 3.73 million depositary shares each. The co-managers subscribed for 700,700 depositary shares each.
The underwriting discount was 78.75 cents per depositary share for retail orders and 50 cents for institutional orders.
Proceeds will be used for general corporate purposes, including the repayment of outstanding debt, the redemption of preferreds and the acquisition of commercial properties.
PS Business Parks is a Glendale, Calif.-based real estate investment trust.
| Issuer: | PS Business Parks Inc.
|
| Securities: | Series T cumulative preferred stock
|
| Amount: | $350 million, or 14 million depositary shares
|
| Greenshoe: | $52.5 million, or 2.1 million depositary shares
|
| Dividend: | 6%
|
| Maturity: | Perpetual
|
| Price: | $25
|
| Call option: | On or after May 14, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc. and RBC Capital Markets LLC
|
| Pricing date: | May 3
|
| Settlement date: | May 14
|
| Expected listing: NYSE: PSBPT
|
| Cusip: | 69360J685
|
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