Aimco to use stock sale proceeds to redeem class T, V, Y preferreds

By Angela McDaniels

Tacoma, Wash., May 10 - Apartment Investment and Management Co. plans to use the proceeds of a public offering of common stock to redeem preferred stock, according to a company news release.

The company plans to use about $150 million of the proceeds to redeem all of its class T cumulative preferreds, about $65 million of the proceeds to redeem all of its class V cumulative preferreds and the remaining proceeds to redeem class Y cumulative preferreds and for general corporate purposes.

The company expects the redemptions to occur in about 30 days.

Aimco is selling 11 million shares of common stock. The offering is expected to close on May 16.

In the company's May 3 earnings release for the first quarter, it said it is considering selling in 2012 properties otherwise expected to be sold in 2013 and 2014 and using the proceeds to redeem high-cost preferred stock.

The company's target ratio of debt and preferred equity to EBITDA is less than 7 times. At the end of the first quarter, its trailing-12-month ratio was 9.7 times.

Aimco is a Denver-based real estate investment trust focused on the ownership and management of apartment communities.

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