By Wendy Van Sickle
Columbus, Ohio, Sept. 14 – Modiv Inc. priced $45 million, or 1.8 million shares, of 7.375% $25-par series A cumulative redeemable perpetual preferred stock (Egan-Jones: BBB-), according to an FWP filing with the Securities and Exchange Commission.
There is a $5 million, or 200,000 share, 30-day over-allotment option.
Joint bookrunners for the offering are B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC.
The lead manager is Colliers Securities LLC.
Dividends will be payable quarterly, beginning Jan. 15.
The preferreds will be callable at par beginning in 2026 or if a delisting event or change of control occurs.
Holders may also convert the preferreds upon occurrence of a change of control.
The company has applied to list the preferreds on the New York Stock Exchange under the ticker symbol “MDVA.”
The company said it plans to contribute the proceeds to its operating partnership in exchange for a new class of preferred units, which will have economic interests that are substantially similar to the designations, preferences and other rights of the series A preferreds. The company, acting through its operating partnership, then plans to use the proceeds from the contribution for general corporate purposes, which may include purchases of additional properties and other real estate and real estate-related assets.
Modiv is a Newport Beach, Calif.-based real estate, fintech and proptech asset manager.
| Issuer: | Modiv Inc.
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| Issue: | Series A cumulative redeemable perpetual preferred stock
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| Amount: | $45 million, or 1.8 million shares
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| Greenshoe: | $5 million, or 200,000 shares
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| Maturity: | Perpetual
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| Bookrunners: | B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC
|
| Lead manager: | Colliers Securities LLC
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| Co-managers: | Aegis Capital Corp., Boenning & Scattergood, Inc., Huntington Capital Markets, InspereX LLC, Maxim Group LLC and Wedbush Securities Inc.
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| Dividend: | 7.375%
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| Price: | Par of $25.00
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| Yield: | 7.375%
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| Call: | On and after Sept. 17, 2026 at par
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| Announcement date: | Sept. 14
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| Trade date: | Sept. 15
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| Settlement date: | Sept. 17
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| Rating: | Egan-Jones: BBB-
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| Listing: | NYSE: MDVA
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| Cusip: | 60784B200
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