By Stephanie N. Rotondo
Seattle, Sept. 12 – Global Medical REIT Inc. sold $67.5 million 7.5% series A cumulative redeemable preferred stock at par on Tuesday, the company said in an FWP filed with the Securities and Exchange Commission.
The deal came in line with the 7.5% price talk.
FBR Capital Markets & Co. and Janney Montgomery Scott LLC are the joint bookrunners.
There is a $10,125,000 over-allotment option.
Dividends will be payable on a quarterly basis. The preferreds become redeemable on Sept. 15, 2022 at par plus accrued dividends.
The issue can also be redeemed upon a change of control.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “GMREPrA.”
The Bethesda, Md.-based health care real estate investment trust will contribute proceeds to its operating partnership in exchange for series A cumulative redeemable operating partnership preferred units. The operating partnership will then use proceeds for general corporate purposes, which may include funding new acquisitions and repaying debt.
| Issuer: | Global Medical REIT Inc.
|
| Securities: | Series A cumulative redeemable preferred stock
|
| Amount: | $67.5 million, or 2.7 million shares
|
| Greenshoe: | $10,125,000, or 405,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | FBR Capital Markets & Co. and Janney Montgomery Scott LLC
|
| Co-managers: | BB&T Capital Markets, Compass Point Research & Trading LLC and D.A. Davidson & Co.
|
| Dividend: | 7.5%
|
| Price: | Par of $25.00
|
| Yield: | 7.5%
|
| Talk: | 7.5%
|
| Call options: | On or after Sept. 15, 2022 or upon a change of control at par plus accrued dividends
|
| Pricing date: | Sept. 12
|
| Settlement date: | Sept. 15
|
| Expected listing: | NYSE: GMREPrA
|
| Cusip: | 37957W203
|
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