Taubman Centers Inc.
) disclosed the pricing of $150 million of 6.25% Series K
cumulative redeemable Preferred Stock. The move comes as part of
its efforts to raise capital for decreasing its outstanding
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Particularly, Taubman announced the pricing of an underwritten
public offering of 6,000,000 shares of 6.25% Series K Cumulative
Redeemable Preferred Stock at a price of $25.00 per share.
Alongside, underwriters have been granted an option to purchase
up to an additional 900,000 shares within 30 days exclusively to
cover over-allotments, if any.
The move is a strategic fit as it would add to Taubman's
financial flexibility and help lower its borrowings under its
$1.165 billion revolving lines of credit. This, in turn, would
reduce its interest expenses.
The joint book-running managers for the offering, which is
expected to close on Mar 15, 2013, are
) and Wells Fargo Securities of
Wells Fargo & Company
). The joint lead managers for the offering are
JPMorgan Chase & Co.
) and Jefferies. Notably, on or after Mar 15, 2018, Taubman has
the option to redeem the Series K cumulative redeemable Preferred
Stock at a price of $25.00 per share.
Mich.-based Taubman Centers Inc. is a real estate investment
trust (REIT), which is engaged in the ownership, management
and/or leasing of 27 regional, super-regional and outlet shopping
centers in the U.S. and Asia.
Taubman has a solid portfolio of the best-in-class retail malls
that generates robust mall tenant sales. Acquisitions of
favorably situated assets are expected to be accretive to its top
line going forward. Also, the company's capital moves are
Moreover, last month, Taubman came up with an impressive fourth
quarter and full year 2012 earnings results, primarily driven by
increase in rents and robust occupancy levels.
Taubman currently retains a Zacks Rank #2 (Buy).