Greystone Housing Impact Investors LP Issues 2,000,000 Series B Preferred Units

Rhea-AI Summary

Greystone Housing Impact Investors LP (NYSE: GHI) has successfully issued 2,000,000 Series B Preferred Units to an existing institutional investor, generating $20,000,000 in new proceeds. The units, issued on March 26, 2025, represent non-cumulative, non-convertible, and non-voting partnership interests.

The Series B Preferred Units were issued under the Partnership's existing 'shelf' registration statement, which allows for up to 10,000,000 units. The holder has redemption options beginning March 2031 and on subsequent anniversaries. This issuance brings the institutional investor's total investment in the Partnership to $70 million across multiple preferred unit series.

CEO Kenneth C. Rogozinski highlighted that this transaction provides non-dilutive, fixed-rate, low-cost institutional capital to support the Partnership's strategy, while demonstrating their ability to enhance liquidity despite high interest rates.

Positive

• Secured $20 million in new low-cost capital
• Non-dilutive financing structure preserves existing unitholder value
• Long-term commitment with earliest redemption in March 2031
• Expanded relationship with institutional investor reaching $70M total investment

Negative

• Potential future redemption obligations starting March 2031

Insights

Financial Analyst

Greystone Housing Impact Investors' $20 million capital raise through Series B Preferred Units represents a strategic financial move with several positive implications for the Partnership's financial position.

The transaction provides non-dilutive capital, meaning existing common unitholders won't see their ownership percentages reduced - a significant advantage over equity issuances that would dilute current investors. With these units being non-cumulative, non-convertible, and non-voting, GHI maintains operational control while securing substantial funding.

The 6-year lock period until March 2031 for potential redemption provides medium-term stability to this capital base. In the current elevated interest rate environment, securing what the company describes as "low-cost capital" represents efficient financial management, though the exact dividend rate isn't disclosed.

This transaction strengthens GHI's liquidity position substantially. At GHI's current $298.5 million market capitalization, this $20 million raise represents approximately 6.7% of the company's market value - a meaningful capital injection.

Particularly noteworthy is that this comes from an existing institutional investor who has now committed $70 million total across multiple preferred unit series, signaling strong institutional confidence in GHI's business model and management team. This continued support from a significant investor suggests ongoing alignment with the Partnership's strategy and execution capabilities.

OMAHA, Neb., March 27, 2025 (GLOBE NEWSWIRE) -- Greystone Housing Impact Investors LP (NYSE: GHI) (“the Partnership”) announced today that on March 26, 2025 the Partnership executed a Subscription Agreement to issue 2,000,000 additional Series B Preferred Units representing limited partnership interests in the Partnership (the “Series B Preferred Units”) to an existing institutional investor, resulting in $20,000,000 in new aggregate proceeds to the Partnership. The stated value of the newly issued Series B Preferred Units is $20,000,000. The Series B Preferred Units were issued in accordance with the Partnership’s existing “shelf” registration statement on Form S-3 (Reg. No. 333-282185) for the issuance of up to 10,000,000 of Series B Preferred Units.

The Series B Preferred Units are a non-cumulative, non-convertible, and non-voting class of limited partnership interests in the Partnership for which the holder has an option to have the units redeemed on the sixth anniversary of the acquisition date and each subsequent anniversary thereafter. The transaction provides the Partnership with $20.0 million of new low-cost capital. The earliest potential redemption date for the newly issued Series B Preferred Units is March 2031, with certain exceptions.

“We are pleased to announce our latest Series B Preferred Unit issuance, which provides non-dilutive, fixed-rate, and low cost institutional capital to execute on our strategy for the benefit of our unitholders,” said Kenneth C. Rogozinski, Chief Executive Officer of the Partnership. “This institutional investor has now invested $70 million into the Partnership through multiple series of preferred units. This transaction also underscores the Partnership’s ability to bolster its liquidity position in a cost-effective fashion despite a persistently elevated interest rate environment.”

About Greystone Housing Impact Investors LP

Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.

Safe Harbor Statement

Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
Andy Grier
Senior Vice President
402-952-1235

FAQ

How much capital did GHI raise through the Series B Preferred Units issuance in March 2025?

GHI raised $20 million through the issuance of 2,000,000 Series B Preferred Units on March 26, 2025.

When can the Series B Preferred Units issued by GHI be redeemed?

The Series B Preferred Units can be redeemed starting March 2031 and on each subsequent anniversary thereafter.

What is the total investment made by the institutional investor in GHI's preferred units?

The institutional investor has invested a total of $70 million across multiple series of preferred units.

How many Series B Preferred Units can GHI issue under their current shelf registration?

GHI can issue up to 10,000,000 Series B Preferred Units under their current shelf registration (Form S-3).

What type of securities are GHI's Series B Preferred Units?

They are non-cumulative, non-convertible, and non-voting partnership interests in the Partnership.