By Andrea Heisinger
New York, Jan. 12 - First Potomac Realty Trust priced $100 million, or 4 million shares, of 7.75% series A cumulative perpetual preferred stock on Wednesday at par of $25.00 after the sale went overnight, an informed source said.
The preferreds (not rated) are callable on or after January 2016.
The preferreds have a change-of-control provision to be used within 120 days if the shares or securities are not listed on the New York Stock Exchange of another stock exchange.
There is an greenshoe for 15% of the initial shares sold, or 600,000 shares, to be used within 30 days.
Wells Fargo Securities LLC managed the books for the sale.
Co-managers were Barclays Capital Inc., KeyBanc Capital Markets, Raymond James, RBC Capital Markets Corp., Janney Montgomery Scott LLC, JJB Hilliard, WL Lyons LLC, Baird and Stifel Nicolaus Weisel.
Proceeds will be contributed to the operating partnership in exchange for preferred partnership units. The operative partnership will be using proceeds to repay a portion of an outstanding revolver, to fund the acquisition of properties, for working capital and for general corporate purposes.
The real estate investment trust for industrial properties in the Washington, D.C., area is based in Bethesda, Md.
| Issuer: | First Potomac Realty Trust
|
| Issue: | Cumulative preferred stock, series A
|
| Amount: | $100 million (4 million shares)
|
| Greenshoe: | 15% of initial shares, or 600,000 shares, to be used within 30 days
|
| Maturity: | Perpetual
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Co-managers: | Barclays Capital Inc., KeyBanc Capital Markets, Raymond James, RBC Capital Markets Corp., Janney Montgomery Scott LLC, JJB Hilliard, WL Lyons LLC, Baird, Stifel Nicolaus Weisel
|
| Dividend: | 7.75%
|
| Price: | Par of $25.00
|
| Yield: | 7.75%
|
| Call: | On or after January 2016
|
| Change-of-control put: | Within 120 days at $25 plus accrued interest if shares or securities are not listed on the NYSE or another stock exchange
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 18
|
| Rating: | Not rated
|
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