By Stephanie N. Rotondo
Phoenix, March 11 - Taubman Centers Inc. priced $150 million of 6.25% series K cumulative redeemable preferred stock, the company said in an FWP filed with the Securities and Exchange Commission on Monday.
Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners. Joint lead managers are J.P. Morgan Securities LLC and Jefferies LLC.
Dividends will be payable around the last day of March, June, September and December, beginning June 28. The preferreds become redeemable at par plus accrued dividends on or after March 15, 2018.
There is also a change-of-control feature.
The Bloomfield Hills, Mich.-based real estate investment trust intends to use the proceeds to reduce borrowings under a $1.65 billion revolving line of credit.
| Issuer: | Taubman Centers Inc.
|
| Securities: | Series K cumulative redeemable preferred stock
|
| Amount: | $150 million, or 6 million shares
|
| Greenshoe: | $22.5 million, or 900,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Lead managers: | J.P. Morgan Securities LLC, Jefferies LLC
|
| Dividend: | 6.25%
|
| Price: | Par of $25.00
|
| Yield: | 6.25%
|
| Talk: | Around 6.25%
|
| Call options: | On or after March 15, 2018 at par plus accrued dividends or within 120 days of a change of control
|
| Pricing date: | March 11
|
| Settlement date: | March 15
|
| Expected symbol: | NYSE: TCOPK
|
| Cusip: | 876664707
|
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