PS Business Parks greenshoe lifts 5.75% preferreds to $230 million

By Susanna Moon

Chicago, Sept. 14 - PS Business Parks Inc. underwriters fully exercised the $30 million over-allotment option on the company's recent offering of 5.75% series U cumulative perpetual preferred shares, bringing the total deal size to $230 million.

The company priced $200 million of the preferreds on Sept. 5. Pricing was originally talked around 5.875% but was revised to 5.75%. The deal was upsized from $100 million.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.