Spirit Realty greenshoe ups 6% cumulative preferreds to $172.5 million

By Wendy Van Sickle

Columbus, Ohio, Oct. 3 – Underwriters for Spirit Realty Capital Inc.’s issue of 6% series A cumulative redeemable preferred stock (Ba1/BB/BB) fully exercised their $22.5 million over-allotment option on Tuesday, increasing the total deal size to $172.5 million, according to a press release.

As previously reported, the company priced $150 million of the preferred stock at par of $25.00 on Sept. 26.

Price talk was 6%.

Morgan Stanley & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunners.

Dividends will be payable on a quarterly basis.

The company can redeem the issue beginning on Oct. 3, 2022. The issue can also be called upon a change of control.

In either case, the redemption price is par plus accrued dividends.

The new securities will list on the New York Stock Exchange under the ticker symbol “SRCPrA.”

The Dallas-based real estate investment trust plans to contribute proceeds from the offering to its operating partnership in exchange for common partnership units. The partnership will then use the funds to repay amounts outstanding under a revolving credit facility and for general corporate purposes.

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