Centerline to launch rights offering for convertible preferreds

By Angela McDaniels

Tacoma, Wash., Jan. 23 - Centerline Holding Co. plans to conduct a rights offering under which its shareholders will be able to purchase convertible preferred shares, according to a company news release.

The company announced a $131.25 million private placement of 11% convertible preferreds in late December. The preferreds issued under the rights offering will have the same terms as those issued in the private placement, including a conversion price of $10.75 per share of common stock.

Centerline expects the private placement to settle soon, at which time the company will announce the record date, subscription ratio, subscription price and expiration date for the rights offering.

Related Cos., the investor in the private placement, will backstop the rights offering.

"We wanted to acknowledge requests raised by our shareholders during our December 28th conference call. We understand they would like the opportunity to invest in the company on the terms offered to Related Companies," Marc D. Schnitzer, chief executive officer and president, said in the release.

"Upon closing of the private placement of the convertible preferred shares, we intend to deploy the proceeds toward accretive growth opportunities in line with our recent strategic shift toward becoming an alternative asset manager specializing in real estate funds and financing."

Centerline is the parent company of Centerline Capital Group, an asset management company based in New York.

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