PS Business Parks to repay loan via new preferred stock offering

By Tali Rackner

Norfolk, Va., Oct. 11 – PS Business Parks, Inc. plans to repay amounts outstanding under its credit facility with the proceeds from the issuance of preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

The company sold $165 million of 5.2% cumulative perpetual preferred stock at par on Tuesday. There is a $24.75 million greenshoe.

As of June 30, there was about $54 million outstanding under the company’s credit facility at an interest rate of 1.33%. Subsequent to June 30, the company repaid $10 million outstanding under the facility, reducing the outstanding balance to $44 million.

The credit facility has an interest rate of Libor plus 87.5 basis points and expires on May 1, 2019.

Any additional net proceeds will be used for general corporate purposes, which may include the acquisition and development of commercial properties.

PS Business Parks is a Glendale, Calif.-based company that owns business park properties in Virginia, Maryland, Texas, California and Oregon.

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