By Stephanie N. Rotondo
Seattle, Sept. 12 – PS Business Parks Inc. priced an upsized $200 million of 5.25% series X cumulative preferred stock (expected ratings: Baa2/BBB) at par on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The $25-par deal was increased from an expected $100 million. Price talk was 5.25% to 5.375%.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners. Both BofA Merrill Lynch and Morgan Stanley subscribed for 2,666,667 shares, while Wells Fargo took 2,666,666 shares.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
There is a $30 million over-allotment option.
Dividends will be payable on a quarterly basis. The preferreds become redeemable on Sept. 21, 2022 at par plus accrued dividends.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “PSBPrX.”
Proceeds will be used to pay down a credit facility. Any remaining funds will be used for general corporate purposes, which may include the acquisition and development of commercial properties.
PS Business Parks is a Glendale, Calif.-based real estate investment trust.
| Issuer: | PS Business Parks Inc.
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| Securities: | Series X cumulative preferred stock
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| Amount: | $200 million, or 8 million shares
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| Greenshoe: | $30 million, or 1.2 million shares
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| Maturity: | Perpetual
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| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC (for 2,666,667 shares each) and Wells Fargo Securities LLC (for 2,666,666 shares)
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| Dividend: | 5.25%
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| Price: | Par of $25.00
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| Yield: | 5.25%
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| Talk: | 5.25% to 5.375%
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| Call options: | On or after Sept. 21, 2022 at par plus accrued dividends
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| Pricing date: | Sept. 12
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| Settlement date: | Sept. 21
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| Expected ratings: | Moody’s: Baa2
|
| S&P: BBB
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| Expected listing: | NYSE: PSBPrX
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| Cusip: | 69360J594
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