By Rebecca Melvin
New York, April 1 - Ramco-Gershenson Properties Trust priced an upsized $80 million, or 1.6 million, of cumulative convertible perpetual preferred shares after the market close Thursday to yield 7.25% with an initial conversion premium of 15%, according to a syndicate source.
Initially, the registered, off-the-shelf deal was going to be $75 million, or 1.5 million shares, in size. Pricing came at the cheap end of talk, which was for a yield of 6.75% to 7.25% and an initial conversion premium of 15% to 20%.
Joint bookrunners were Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, with KeyBanc Capital Markets Inc. and Stifel, Nicolaus & Co. Inc. acting as the lead managers, and Comerica Securities Inc., PNC Capital Markets LLC, and RBS Securities Inc. acting as co-managers.
There is a greenshoe for up to an additional $12 million of the preferreds, which was upsized from $11.25 million.
There is a forced conversion feature after seven years beginning April 20, 2018, subject to a 130% price hurdle.
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.
An application has been made to list the series D preferred shares on the NYSE under the symbol "RPT PrD."
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.
| Issuer: | Ramco-Gershenson Properties Trust
|
| Issue: | Cumulative convertible perpetual shares
|
| Amount: | $80 million, upsized from $75 million
|
| Greenshoe: | $12 million, upsized from $11.25 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Lead managers: | KeyBanc Capital Markets Inc. and Stifel, Nicolaus & Co. Inc.
|
| Co-managers: | Comerica Securities Inc., PNC Capital Markets LLC, and RBS Securities Inc. Dividend: | 7.25%
|
| Price: | Par, $50.00
|
| Yield: | 7.25%
|
| Conversion premium: | 15%
|
| Conversion price: | $14.41
|
| Conversion ratio: | 3.4699 common shares
|
| Forced conversion: | On or after April 20, 2018, subject to 130% price hurdle
|
| Takeover protection: | Yes
|
| Price talk: | 6.75%-7.25%, up 15%-20%
|
| Pricing date: | March 31, after the market close
|
| Settlement date: | April 6
|
| Distribution: | Registered, off-the-shelf
|
| Stock symbol: | NYSE: RPT
|
| Stock reference price: | $12.53
|
| Market capitalization: | $473 million
|
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