Creative Media plans up to $400 million of series A1 preferreds

By Wendy Van Sickle

Columbus, Ohio, April 11 – Creative Media & Community Trust Corp. plans to price up to $400 million $25-par series A1 preferred stock, according to a prospectus filing with the Securities and Exchange Commission.

If authorized by the company’s board of directors, the preferreds will pay dividends at a rate of the greater of 6% and the Federal Funds Effective rate plus 250 basis points.

The preferreds may be redeemed at the option of the holder at a price of 91 in year one, 92 in year two, 93 in year three, 94 in year four, 95 in year five and at par starting in year six and may be redeemed at the option of the issuer at par after two years.

CCO Capital, LLC is the dealer manager.

Counsel for the issuer is provided by Venable LLP and Sullivan & Cromwell LLP.

The company does not plan to list the preferreds on any securities exchange.

Proceeds are planned to be used for general corporate purposes, acquisitions of shares of Creative Media’s common stock and preferred stock through one or more tender offers, share repurchases, preferred stock redemptions or otherwise and acquisitions and/or additional investments consistent with its acquisition and asset management strategies.

The company is a Dallas-based real estate investment trust specializing in office space.

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