Securities sold along with warrants for $50 million of common shares
By Devika Patel
Knoxville, Tenn., Aug. 8 - Landmark Apartment Trust of America, Inc. arranged a private placement of preferred stock and common stock to raise about $51.65 million on Aug. 3, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company will sell $40 million of 9.75% series A cumulative non-convertible redeemable preferreds to 2335887 LP.
The company will also sell $10 million of 9.75% series B cumulative non-convertible redeemable preferreds to DK Landmark, LLC. The 10% preferreds may be called and are not convertible into common stock.
The company also will sell about $1.65 million of common shares at $8.15 per share to Elco Landmark Residential Holdings, LLC.
The preferred investors also will receive warrants for $50 million of shares. The warrants are each exercisable at $9.00.
Proceeds will be used to acquire a portfolio of 20 multifamily apartment communities and a 360-unit multifamily apartment community known as Andros Isles Apartments.
Landmark is a Richmond, Va.-based private owner of apartment communities.
| Issuer: | Landmark Apartment Trust of America, Inc.
|
| Issue: | Series A cumulative non-convertible redeemable preferred stock, series B cumulative non-convertible redeemable preferred stock, common stock
|
| Amount: | $51.65 million (approximate)
|
| Warrants: | For $50 million of shares
|
| Warrant strike price: | $9.00
|
| Settlement date: | Aug. 3
|
|
|
| Series A preferreds
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| Amount: | $40 million
|
| Dividends: | 9.75%
|
| Call: | Yes
|
| Investor: | 2335887 LP
|
|
|
| Series B preferreds
|
| Amount: | $10 million
|
| Dividends: | 9.75%
|
| Call: | Yes
|
| Investor: | DK Landmark, LLC
|
|
|
| Common stock
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| Amount: | $1.65 million (approximate)
|
| Price: | $8.15
|
| Investor: | Elco Landmark Residential Holdings, LLC
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