By Stephanie N. Rotondo
Portland, Ore., Sept. 28 - Inland Real Estate Corp. brought a $50 million new issue of 8.125% series A cumulative redeemable perpetual preferred stock on Thursday, according to a market source.
There is a $7.5 million over-allotment option.
Dividends on the $25-par preferreds are payable monthly, beginning on Nov. 15. The issue is non-rated.
The Oak Brook, Ill.-based real estate investment trust has the option to call the preferreds at par beginning Oct. 6, 2016. There is also a change-of-control clause that allows the company to redeem the preferreds within 120 days of a change of control. Should that occur, preferred holders have the option to convert their holdings into common stock.
Wells Fargo Securities LLC and Bank of America Merrill Lynch are the bookrunners. BMO Capital Markets Corp. and KeyBanc Capital Markets Inc. are the senior co-managers. Deutsche Bank Securities Inc., Janney Montgomery Scott LLC and Macquarie Capital (USA) Inc. are the co-managers.
Settlement is expected Oct. 6.
Proceeds will be used to buy additional properties and for general corporate purposes, including the repayment of debt - possibly the 4.625% convertible notes due 2026 as well as any amounts outstanding under the company's credit line.
Inland will apply to list the preferreds on the New York Stock Exchange. The expected ticker symbol is "IRCPA."
| Issuer: | Inland Real Estate Corp.
|
| Securities: | Series A cumulative redeemable perpetual preferred stock
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million
|
| Preferreds: | 2 million
|
| Dividend: | 8.125%, payable monthly
|
| Price: | Par of $25
|
| Redemption options: | Callable at par after five years; change-of-control feature
|
| Bookrunners: | Wells Fargo Securities LLC and Bank of America Merrill Lynch
|
| Senior co-managers: | BMO Capital Markets Corp. and KeyBanc Capital Markets Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., Janney Montgomery Scott LLC and Macquarie Capital (USA) Inc.
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 6
|
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