By Stephanie N. Rotondo
Seattle, Oct. 11 – PS Business Parks Inc. priced $165 million of 5.2% series W cumulative preferred shares (expected ratings: Baa2/BBB) at par of $25.00 on Tuesday, a market source reported.
Price talk was 5.25%. The deal came upsized from $100 million.
There is a $24.75 million over-allotment option.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
Dividends will be payable on the last day of March, June, September and December, beginning Dec. 31. The paper becomes redeemable on or after Oct. 20, 2021 at par plus accrued dividends.
The Glendale, Calif.-based real estate investment trust will use the proceeds to repay outstanding debt under a credit facility. Any additional funds will be used for general corporate purposes.
| Issuer: | PS Business Parks Inc.
|
| Securities: | Series W cumulative preferred stock
|
| Amount: | $165 million, or 6.6 million shares
|
| Greenshoe: | $24.75 million, or 990,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Dividend: | 5.2%
|
| Price: | Par of $25.00
|
| Yield: | 5.2%
|
| Talk: | 5.25%
|
| Call options: | On or after Oct. 20, 2021 at par plus accrued dividends
|
| Pricing date: | Oct. 11
|
| Settlement date: | Oct. 20
|
| Expected ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Expected listing: | NYSE: PSBPW
|
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