Ramco-Gershenson plans $75 million perpetual convertible preferreds at 6.75%-7.25%, up 15%-20%

By Rebecca Melvin

New York, March 31 - Ramco-Gershenson Properties Trust plans to sell $75 million, or 1.5 million shares, of cumulative convertible perpetual preferred shares after the market close Thursday that were talked to yield 6.75% to 7.25% with an initial conversion premium of 15% to 20%, according to a syndicate source.

Joint bookrunners of the registered, off-the-shelf deal are Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, with KeyBanc Capital Markets Inc. acting as the lead manager and Stifel, Nicolaus & Co. Inc. acting as a co-manager.

There is a greenshoe for up to an additional $11.25 million.

Proceeds from the offering will be used to retire the firm's $30 million bridge loan and reduce outstanding borrowings under its secured revolving credit facility.

Proceeds may also be used to repay other outstanding debt and for general corporate purposes.

Farmington Hills, Mich.-based Ramco-Gershenson is a real estate investment trust focused on community shopping centers in states such as Michigan, Florida and Georgia.

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