By Abigail W. Adams
Portland, Me., March 28 – Landmark Infrastructure Partners LP priced $50 million, or 2 million shares, of $25-par series C floating-to-fixed rate cumulative perpetual convertible preferred units prior to the market open Wednesday at par with a rate of Libor plus 469.8 bps, equaling an implied dividend of 7%, and a fixed conversion premium of 15%.
Pricing came at the cheap end of talk for a rate of Libor plus 420 bps to Libor plus 470 bps, which equals an implied dividend of 6.5% to 7%, according to a market source.
The initial conversion premium was talked at a fixed level of 15%, according to a market source.
The convertible preferred units will float until May 15, 2025 and then switch to a fixed dividend of 9%.
Raymond James and UBS Investment Bank are joint bookrunners for the offering, which carries a greenshoe $7.5 million, or 300,000 shares.
Dividends will be paid quarterly.
There will be a put option on the convertible preferred units on May 15, 2025, May 15, 2028 and each subsequent five-year anniversary, according to a 424B5 filing with the Securities and Exchange Commission.
The convertible preferred units are freely callable at par on or after May 15, 2025. The convertible preferred units will be listed on Nasdaq under the ticker “LMRKN.”
Proceeds are expected to be $47.5 million, or $54.7 million if the greenshoe is exercised in full. Proceeds will be used to repay indebtedness under Landmark’s revolving credit facility.
Landmark is an El Segundo, Calif.-based real estate property manager.
| Issuer: | Landmark Infrastructure Partners LP
|
| Securities: | Series C floating-to-fixed rate preferred units
|
| Amount: | $50 million, or 2 million shares
|
| Greenshoe: | $7.5 million, or 300,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Raymond James and UBS Investment Bank
|
| Co-managers: | B. Riley FBR, Inc. and Janney Montgomery Scott LLC
|
| Dividend: | Libor plus 469.8 bps for seven years then 9%
|
| Price: | Par of $25
|
| Conversion premium: | 15%
|
| Conversion ratio: | 1.3017
|
| Conversion price: | $19.21
|
| Call options: | Freely callable after May 15, 2025
|
| Put options: | Puttable on May 15, 2025, May 15, 2028 and each five-year anniversary
|
| Pricing date: | March 28
|
| Settlement date: | April 2
|
| Listing: | Nasdaq: LMRKN
|
| Stock symbol: | Nasdaq: LMRK
|
| Stock price: | $16.75
|
| Market capitalization: | $407.83 million
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
