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Jernigan Capital talks series B cumulative redeemable preferreds to yield 6.75% to 7%
By Abigail W. Adams
Portland, Me. Jan. 18 – Jernigan Capital, Inc. plans to price an offering of $25-par series B cumulative redeemable perpetual preferred stock after the market close on Thursday with price talk for a yield of 6.75% to 7%, according to a market source.
Raymond James and Morgan Stanley are joint bookrunners for the offering.
B. Riley FBR, Inc., BMO Capital Markets Corp. and KeyBanc Capital Markets Inc. are co-managers.
The preferreds are non-callable until January 2023, except in a change of control event or to preserve Jernigan’s tax status as a REIT.
Starting January 2023, there is a call option exercisable at par, according to the preliminary prospectus.
There is takeover protection. Holders may convert their notes into shares of common stock in a change of control event, unless Jernigan exercises its redemption rights.
The series B preferred stock will be convertible into the lesser of the sum of the liquidation preference plus accrued and unpaid interest divided by the stock price or the share cap.
Dividends will be cumulative and paid quarterly.
No person or entity may own more than 9.8% of the outstanding shares of any class or series of capital stock.
Jernigan intends to list the series B preferred stock on the New York Stock Exchange under the symbol “JCAPPrB.”
Proceeds will be used to help finance the Miami investment portfolio of Jernigan’s operating company or for other future investments if the Miami investment is not consummated, according to the preliminary prospectus.
Jernigan is a Memphis, Tenn.-based real estate investment trust.
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