Saul Centers, Inc. (NYSE: BFS) announced that it priced 3 million depositary shares, each representing a 1/100th fractional interest in a share of the Company's 6.125% Series D Cumulative Redeemable Preferred Stock, at an initial public offering price of $25.00 per depositary share. The dividend rate of the Series D Cumulative Redeemable Preferred Stock underlying the depositary shares will be at a fixed rate of 6.125% of the liquidation preference per year, which is equivalent to an annual dividend of $1.53125 per depositary share. Dividends will be paid quarterly in arrears. The Company estimates that net proceeds from this offering, after deducting underwriting discounts, commissions and estimated offering expenses, will be approximately $72,137,500 million (assuming no exercise of the underwriters' over-allotment option).
The Company intends to use the net proceeds from this offering to redeem, in part, outstanding shares of its 6.875% Series C Cumulative Redeemable Preferred Stock and the related depositary shares.
The offering is expected to close on or about January 23, 2018, subject to customary closing conditions. Up to 450,000 additional depositary shares may be issued pursuant to the underwriters' over-allotment option within 30 days of the initial issuance of the depositary shares. The Company anticipates listing the depositary shares on the New York Stock Exchange.
The joint book-running managers for the offering are Raymond James & Associates, Inc., RBC Capital Markets, LLC, Stifel, Nicolaus & Company, Incorporated, B. Riley FBR, Inc. and D.A. Davidson & Co.
Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 58 properties which includes (a) 49 community and neighborhood shopping centers and six mixed-use properties with approximately 9.2 million square feet of leasable area and (b) three land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.
