By Stephanie N. Rotondo
Portland, Ore., Nov. 18 - Winthrop Realty Trust brought a $40 million offering of 9.25% series D cumulative redeemable preferred shares of beneficial interest, the company said in a press release Friday.
There is a $6 million, or 240,000 preferreds, over-allotment option.
Michael L. Ashner, chief executive officer of the Boston-based real estate investment trust, has committed to purchasing 100,000 preferreds.
Dividends will be payable quarterly on the last day of March, June, September and December.
The preferreds will be callable starting Nov. 28, 2016. There is also a change-of-control provision at par plus accrued dividends.
Settlement is expected Nov. 28.
Barclays Capital Inc. and Stifel Nicolaus Weisel are running the books.
Proceeds are being contributed to the company's operating partnership in exchange for preferred units of partnership interest. The net proceeds will be used to fund future acquisitions, pay down borrowings under a credit facility, repurchase common stock shares and/or for general working capital purposes including funding capital expenditures, tenant improvements and leasing commissions.
Winthrop intends to list the preferreds on the New York Stock Exchange under the symbol "FURPrD."
| Issuer: | Winthrop Realty Trust
|
| Securities: | Series D cumulative redeemable perpetual preferred stock
|
| Amount: | $40 million
|
| Greenshoe: | $6 million
|
| Dividend: | 9.25%, payable quarterly
|
| Price: | $25 per preferred
|
| Call options: | Optional after Nov. 28, 2016 or in the event of a change of control
|
| Bookrunners: | Barclays Capital Inc. and Stifel Nicolaus Weisel
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 28
|
| Listing: | NYSE: FURPrD
|
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