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Published on 9/13/2021 in the Prospect News Preferred Stock Daily.

Modiv to launch $35 million $25-par cumulative perpetual preferreds

By Marisa Wong

Los Angeles, Sept. 13 – Modiv Inc. is proposing to issue 1.4 million shares of $25-par series A cumulative redeemable perpetual preferred stock, according to a press release and filings with the Securities and Exchange Commission.

The underwriters are expected to be granted a 30-day option to purchase up to an additional 210,000 shares of series A preferreds.

Joint bookrunners for the offering are B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC.

The lead manager is Colliers Securities LLC, and the co-managers are Aegis Capital Corp., Boenning & Scattergood, Inc., Huntington Capital Markets, InspereX LLC, Maxim Group LLC and Wedbush Securities Inc.

Dividends will be payable quarterly, beginning Jan. 15.

The preferreds will be callable at par beginning in 2026 or if a delisting event or change of control occurs.

Holders may also convert the preferreds upon occurrence of a change of control.

The company has applied to list the shares on the New York Stock Exchange under the ticker symbol “MDVA.”

The company said it plans to contribute the proceeds to its operating partnership in exchange for a new class of preferred units, which will have economic interests that are substantially similar to the designations, preferences and other rights of the series A preferreds. The company, acting through its operating partnership, then plans to use the proceeds from the contribution for general corporate purposes, which may include purchases of additional properties and other real estate and real estate-related assets.

Modiv is a Newport Beach, Calif.-based real estate, fintech and proptech asset manager.


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