By Stephanie N. Rotondo
Phoenix, Sept. 5 - PS Business Parks Inc. is offering $200 million of 5.75% series U cumulative perpetual preferred shares, the company said in press release on Wednesday.
Pricing was originally talked around 5.875% but was revised to 5.75%. The deal was upsized from $100 million.
There is a $30 million over-allotment option.
Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunning managers. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the co-managers.
The preferreds have a liquidation preference of $25,000 each. The securities will be issued as $25 depositary shares each representing a 1/1,000th interest in a preferred.
Dividends will be paid quarterly beginning Dec. 31.
The preferred shares cannot be redeemed until Sept. 14, 2017.
The company will apply to list the new securities on the New York Stock Exchange under the ticker symbol "PSBPU." Settlement is expected Sept. 14.
Proceeds will be contributed to the company's operating partnership, PS Business Parks LP, in exchange for preferred units of limited partnership that have substantially identical economic terms as the preferreds. The funds will be used for general corporate purposes, including the redemption of all outstanding 6.7% series P cumulative preferreds on Oct. 9.
PS Business Parks is a Glendale, Calif.-based real estate investment trust.
| Issuer: | PS Business Parks Inc.
|
| Securities: | Series U cumulative preferred stock
|
| Amount: | $200 million, or 8 million depositary shares
|
| Greenshoe: | $30 million, or 1.2 million depositary shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Dividend: | 5.75%
|
| Price: | Par of $25.00
|
| Yield: | 5.75%
|
| Call option: | On or after Sept. 14, 2017
|
| Pricing date: | Sept. 5
|
| Settlement date: | Sept. 14
|
| Expected listing: | NYSE: PSBPU
|
| Cusip: | 69360J669
|
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