CapLease plans $50 million sale of preferreds; talk is 8.375% to 8.5%

By Stephanie N. Rotondo

Portland, Ore., April 16 - CapLease Inc. intends to sell series B cumulative redeemable preferred stock, the company said in a 424B2 filing with the Securities and Exchange Commission on Monday.

A trader said the deal is expected to be priced between 8.375% and 8.5% and the deal size is expected to be $50 million.

Wells Fargo Securities LLC and Citigroup Global Markets Inc. are the joint bookrunning managers.

Dividends will be paid on the 15th of January, April, July and October beginning 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 "LSEPB."

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.

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