By Stephanie N. Rotondo
Seattle, Sept. 26 – Investors Real Estate Trust sold $100 million of 6.625% series C cumulative redeemable preferred shares on Tuesday at par of $25.00, according to a press release.
Price talk was 6.5% to 6.75%.
BMO Capital Markets and Raymond James & Associates Inc. are the joint bookrunners.
There is a $15 million over-allotment option.
Dividends will be payable quarterly. The preferreds become redeemable on Oct. 2, 2022 or upon a change of control at par plus accrued dividends.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “IRETPrC.”
The Minot, N.D.-based real estate investment trust will contribute proceeds to its operating partnership in exchange for series C cumulative redeemable preferred units. The operating partnership will then use the funds to redeem the company’s $115 million of 7.95% series B cumulative redeemable preferred shares (NYSE: IRETPrB).
| Issuer: | Investors Real Estate Trust
|
| Securities: | Series C cumulative redeemable preferred stock
|
| Amount: | $100 million, or 4 million shares
|
| Greenshoe: | $15 million, or 600,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BMO Capital Markets and Raymond James & Associates Inc.
|
| Co-managers: | Baird, D.A. Davidson & Co., Janney Montgomery Scott LLC, PNC Capital Markets LLC and J.J.B. Hilliard, W.L. Lyons, LLC
|
| Dividend: | 6.625%
|
| Price: | Par of $25.00
|
| Yield: | 6.625%
|
| Talk: | 6.5% to 6.75%
|
| Call options: | On or after Oct. 2, 2022, or upon a change of control, at par plus accrued dividends
|
| Pricing date: | Sept. 26
|
| Settlement date: | Oct. 2
|
| Expected listing: | NYSE: IRETPrC
|
| Cusip: | 461730400
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