Centerline gives details on rights offering for convertible preferreds

By Angela McDaniels

Tacoma, Wash., Jan. 25 - Centerline Holding Co. announced details of a rights offering under which its shareholders will be able to purchase convertible preferred shares.

The company also announced that it closed a $131.2 million private placement of 11% cumulative convertible preferred shares, series A-1. 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 and a liquidation preference of $11.70 per share.

Centerline said that it will distribute non-transferable rights to subscribe for and purchase up to 11,216,628 convertible preferred shares to holders of record as of Feb. 4. Holders of its common shares, preferred shares and other securities that are convertible into common shares or entitled to distributions or voting rights are included.

Under the terms of the offering, each security holder will receive one right for each common share or common share equivalent owned.

Rights holders will be entitled to purchase one convertible preferred share at a subscription price of $11.70 per share for each six rights they own.

The rights offering will expire at 5 p.m. ET on Feb. 20.

Related Cos., the investor in the private placement, will not participate in the offering but will backstop the rights offering.

The company said it will redeem from Related Cos. a number of convertible preferred shares equal to that number of shares which are subscribed for through the rights offering.

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

For more information, contact Centerline's corporate communications department at (800 831-4826 or info@centerline.com).

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