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Wheeler to price $25 million add on to 8.75% perpetual convertible preferred stock
By Abigail W. Adams
Portland, Me., Jan. 9 – Wheeler Real Estate Investment Trust, Inc. plans to price a $25 million add on to its $25-par perpetual series D cumulative convertible preferred stock with an 8.75% dividend.
Ladenburg Thalmann & Co. Inc. and BTIG, LLC are acting as joint bookrunners for the registered offering, which carries a $3.75 million greenshoe, according to the deal’s prospectus.
The offering size is subject to change during the bookbuilding process.
The dividend will increase by 2% of the liquidation preference annually beginning on Sept. 21, 2023 with a maximum rate of 14%.
The conversion price is $16.96. At the original pricing on Sept. 15, 2016, that price was equivalent to an initial conversion premium of 20%.
The preferred stock is callable at par beginning Sept. 21, 2021. The notes are also callable prior to Sept. 21, 2021 in the event of a delisting, change of control or to preserve Wheeler’s tax status.
There is a put option exercisable on Sept. 21, 2023, which will be settled in cash or stock at the company’s option.
The preferred stock will form a single series with Wheeler’s previously issued series D preferred stock which currently has 2,237,000 shares outstanding, or $55,925,000 liquidation preference, according to the prospectus.
The preferred stock trades on Nasdaq under the symbol WHLRD.
Proceeds will be used to partially fund the acquisition of the Janaf shopping center in Norfolk, Va. Wheeler announced Tuesday it has entered into a purchase-and-sales-agreement for the 887,917 square foot shopping center.
The acquisition is expected to cost $85.65 million, according to a company release.
Wheeler is a Virginia Beach, Va.-based real estate investment trust focused on the acquisition and management of income-producing retail properties.
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