By Stephanie N. Rotondo
Phoenix, Sept. 11 - Cedar Realty Trust Inc. is issuing an additional $105 million of its 7.25% series B cumulative redeemable perpetual preferred shares, the company said in a press release on Tuesday.
There is a $15.75 million over-allotment option.
The preferreds were priced at $23.9366 each, a 5.2% discount to Monday's closing price of $25.20.
Bank of America Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunning managers. The joint lead managers are Raymond James & Associates Inc., RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc.
The preferreds are callable on or after May 22, 2017.
Proceeds will be contributed to the company's operating partnership in exchange for preferred units of limited partnership interest. The operating partnership will use the funds to redeem the 8.875% series A cumulative redeemable preferreds.
There are 599,402 preferreds outstanding.
Cedar Realty is a Port Washington, N.Y.-based real estate investment trust.
| Issuer: | Cedar Realty Trust Inc.
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $105 million, or 4.2 million shares
|
| Greenshoe: | $15.75 million, or 630,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities LLC
|
| Lead managers: | Raymond James & Associates Inc., RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and MLV & Co.
|
| Dividend: | 7.25%, payable quarterly
|
| Price: | $23.9366
|
| Liquidation preference: | $25.00
|
| Call option: | On or after May 22, 2017 or in the event of a change of control
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 14
|
| Security symbol: | NYSE: CDRPB
|
| Security price: | $23.90 at close on Sept. 11
|
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