By Cristal Cody
Tupelo, Miss., Nov. 30 – PS Business Parks Inc. sold $200 million of 5.2% series Y cumulative preferred shares on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The preferreds (Baa2/BBB) were issued as 8 million depositary shares, which each represent 1/1,000th of an interest in a share of preferred stock and will have a liquidation preference of $25.00.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Dividends are payable quarterly on March 31, June 30, Sept. 30 and Dec. 31 of each year. The preferreds are redeemable on or after Dec. 7, 2022 at $1,000 per preferred, which is equivalent to $25.00 per depositary share, plus any unpaid dividends.
Proceeds will be used for the redemption of the company’s 6% series T cumulative preferred stock, to repay debt under its credit facility and for general corporate purposes.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “PSBPrY.”
PS Business Parks is a Glendale, Calif.-based real estate investment trust.
| Issuer: | PS Business Parks Inc.
|
| Amount: | $200 million, 8 million shares
|
| Description: | Cumulative preferred shares
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC
|
| Dividend: | 5.2%
|
| Price: | $25.00 per depositary share
|
| Yield: | 5.2%
|
| Call features: | On or after Dec. 7, 2022 at $25.00 per share, plus accrued and unpaid dividends
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 7
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Listing: | NYSE: PSBPrY
|
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