Wheeler REIT offers $21.75 million of additional 8.75% cumulative convertible preferred stock

By Stephanie N. Rotondo

Seattle, Nov. 28 – Wheeler Real Estate Investment Trust Inc. is bringing a $21.75 million add-on offering of its 8.75% series D cumulative convertible preferred shares (Nasdaq: WHLRD) with a liquidation preference of $25.00 per share, according to a regulatory filing.

Official pricing is expected on Nov. 30.

The convertible preferreds are being offered at $24.50 a share.

There is a $3.25 million over-allotment option.

The Virginia Beach, Va.-based company initially sold $40 million of the convertible preferreds on Sept. 16.

Compass Point Research & Trading LLC, Wunderlich Securities Inc. and Ladenburg Thalmann & Co. Inc. are the bookrunners.

The perpetual preferreds are non-callable for five years, and holders can put the paper at year seven.

The dividend will step up by 2% a year beginning in 2023 until it reaches a maximum of 14%.

Of the proceeds, about $7.7 million will be used to repay the loan with Revere High Yield Fund LP. Remaining funds will be used for future acquisitions, for investments in properties and for general corporate purposes.

Wheeler is a Virginia Beach, Va.-based commercial real estate investment company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.