By Stephanie N. Rotondo
Portland, Ore., Oct. 26 - STAG Industrial, Inc. priced a $60 million sale of 9% series A cumulative redeemable preferred stock, according to an FWP filed with the Securities and Exchange Commission on Wednesday.
Price talk had been a 9% to 9.125% dividend rate and a $50 million issue size. The deal was originally announced Oct. 3.
The offering has a $9 million, or 360,000 share, over-allotment option.
The liquidation preference is $25 per preferred.
Dividends are payable in cash on the last day of March, June, September and December, beginning Dec. 30.
The preferreds are redeemable, at the company's option, beginning Nov. 2, 2016, at par plus accrued dividends. The securities are also redeemable in the event of a change of control.
There is no mandatory redemption nor any sinking fund clause.
Bank of America Merrill Lynch, Raymond James & Associates, Inc., UBS Securities LLC and Wells Fargo Securities, LLC are the joint book-running managers. RBC Capital Markets LLC is the lead manager, and Keefe, Bruyette & Woods Inc. is the co-manager.
Settlement is expected Nov. 2.
Proceeds from the offering will be contributed to the company's operating partnership, STAG Industrial Operating Partnership, LP, which will use the funds for future acquisitions, to repay credit facilities debt and for general corporate purposes.
The Boston-based real estate investment trust intends to apply to list the preferreds on the New York Stock Exchange under the symbol "STAGPA."
| Issuer: | STAG Industrial Inc.
|
| Securities: | Series A cumulative redeemable preferred stock
|
| Amount: | $60 million, or 2.4 million preferreds
|
| Greenshoe: | $9 million, or 360,000 preferreds
|
| Dividend: | 9%, payable quarterly
|
| Price: | $25 per preferred
|
| Redemption options: | At company's option after Nov. 2, 2016 or in the event of a change of control
|
| Joint bookrunners: | Bank of America Merrill Lynch, Raymond James & Associates, Inc., UBS Securities LLC and Wells Fargo Securities, LLC
|
| Lead manager: | RBC Capital Markets LLC
|
| Co-manager: | Keefe, Bruyette & Woods Inc.
|
| Pricing date: | Oct. 26
|
| Settlement date: | Nov. 2
|
| Planned listing: | NYSE: STAGPA
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