Cedar Realty Trust, Inc. (NYSE: CDR) has priced an underwritten public offering of 400,000 shares of its 7.25% Series B Cumulative Redeemable Preferred Stock at $23.00 per share. Gross proceeds to the Company will be approximately $9,200,000. Closing of the offering is scheduled for May 22, 2012.
The Company intends to use the net proceeds from the offering to redeem an equivalent amount of its outstanding 8 7/8% Series A Cumulative Redeemable Preferred Stock. Pending such redemption the net proceeds will be used to reduce amounts outstanding under its secured revolving credit facility. The Company also intends to redeem additional amounts of its Series A Preferred Stock, from time to time, in the near term.
The shares of Series B Preferred Stock have a liquidation preference of $25.00 per share, have no stated maturity, are not subject to any sinking fund and are redeemable, at the Company's option, beginning on May 22, 2017, at a redemption price of $25.00 per share plus accrued and unpaid distributions, as well as under certain other circumstances. Subject to issuance, the Company anticipates that the outstanding shares of Series B Preferred Stock will be listed on the New York Stock Exchange under the symbol "CDR PrB."
The offering was made pursuant to a shelf registration. A final prospectus supplement relating to the offering will be filed with the Securities and Exchange Commission.
MLV & Co. LLC is acting as sole book-running manager for the offering, and Sandler O'Neill & Partners, L.P. is acting as a co-lead manager for the offering.
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