By Stephanie N. Rotondo and Susanna Moon
Chicago, April 16 - CapLease Inc. said it priced $50 million of series B cumulative redeemable preferred stock with a dividend rate of 8.375% per year, at the low end of talk. There is a 30-day over-allotment option to purchase up to 300,000 additional shares.
The company announced the $25.00 liquidation preference offering in a 424B2 filing with the Securities and Exchange Commission on Monday, and a trader said the deal was expected to price between 8.375% and 8.5%.
The dividend rate is the equivalent of $2.09375 per year per preferred share.
The offering is expected to settle on Thursday.
Wells Fargo Securities LLC and Citigroup Global Markets Inc. are the joint bookrunning managers. Stifel, Nicolaus & Co., Inc. and Keefe, Bruyette & Woods, Inc. are the co-managers.
Dividends will be paid on the 15th of January, April, July and October beginning on July 16.
The preferreds are redeemable beginning in April 2017 or in the event of a change of control. There is no stated maturity.
CapLease will apply to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "LSEPrB."
Proceeds will be used for acquisitions and other general corporate purposes. The company might also use a portion to reduce outstanding debt obligations.
CapLease is a New York-based real estate investment trust that primarily owns and manages single-tenant commercial real estate properties.
| Issuer: | CapLease, Inc.
|
| Issue: | Series B cumulative redeemable preferred stock
|
| Amount: | $50 million
|
| Greenshoe: | 300,000 shares
|
| Shares: | 2 million
|
| Dividend: | 8.375%
|
| Price: | $25.00 liquidation preference
|
| Call option: | Beginning April 2017
|
| Bookrunners: | Wells Fargo Securities LLC and Citigroup Global Markets Inc.
|
| Co-managers: | Stifel, Nicolaus & Co., Inc. and Keefe, Bruyette & Woods, Inc.
|
| Trade date: | April 16
|
| Settlement date: | April 19
|
| Listing: | NYSE: LSEPrB
|
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