Landmark Infrastructure talks convertible preferred units to yield 6.5% to 7%, up 15%

By Abigail W. Adams and James McCandless

Portland, Me., March 23 – Landmark Infrastructure Partners LP plans to price an offering of $25-par series C floating-to-fixed rate cumulative perpetual redeemable convertible preferred units after the market close on Tuesday with price talk for a dividend of 6.5% to 7% and a fixed initial conversion premium of 15%, according to a market source.

The size of the offering is flexible and will be based on demand, the source said.

Raymond James and UBS Investment Bank are joint bookrunners for the offering, which carries a greenshoe.

The convertible preferred units will accrue interest at a rate that is either the greater of a fixed dividend or Libor plus a to-be-determined spread until 2025 when they will switch to a fixed dividend.

Dividends will be paid quarterly.

There will be a put option on the convertible preferred units in 2025, 2028 and each subsequent five-year anniversary, according to a 424B5 filing with the Securities and Exchange Commission.

The convertible preferred units are freely callable at par after a specified date in 2025. The convertible preferred units will be listed on Nasdaq under the ticker “LMRKN.”

Proceeds will be used to repay indebtedness under Landmark’s revolving credit facility. Landmark is an El Segundo, Calif.-based real estate property manager.

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