Taubman Centers, Inc. Provides Notice of Redemption of 6.5% Series J Cumulative Redeemable Preferred Stock and of 6.25% Series K Cumulative Redeemable Preferred Stock
Taubman Centers, Inc. (NYSE: TCO) has announced the redemption of its 6.5% Series J and 6.25% Series K Cumulative Redeemable Preferred Stock, effective January 28, 2021. There are 7.7 million shares of Series J with a liquidation preference of $192.5 million and 6.8 million shares of Series K with a preference of $170 million. Holders will receive $25 per share plus accrued dividends. A dividend will still be paid on December 31, 2020, to shareholders of record as of December 15, 2020. The company has deposited the necessary funds in trust for the redemption and dividend payments.
- Redemption of 6.5% Series J and 6.25% Series K Preferred Stock enhances capital structure.
- Dividends are scheduled to be paid on December 31, 2020, ensuring shareholder returns.
- Redemption indicates a shift in capital allocation, potentially limiting future funding options.
Taubman Centers, Inc. (the “Company”; NYSE: TCO) announced that, effective today, it has provided notice to redeem on January 28, 2021, (the “Redemption Date”) all of the outstanding shares of its
The Company will pay the holders of the Series J Preferred Stock cash in the amount of
The Company will pay the holders of the Series K Preferred Stock cash in the amount of
The previously announced dividend will still be paid on December 31, 2020 to shareholders of record as of the close of business on December 15, 2020 (the “December 31 Dividend”). The full amount of the December 31 Dividend and the aggregate Redemption Price have each been irrevocably deposited in trust by the Company for the benefit of the holders of the Series J Preferred Stock and the holders of the Series K Preferred Stock to pay the scheduled dividend on December 31, 2020 and to effect the redemption on the Redemption Date. After the payment of the Redemption Price and accrued and unpaid dividends up to but not including the Redemption Date, all shares of the Series J Preferred Stock and all shares of the Series K Preferred Stock will no longer be deemed to be outstanding, dividends will cease to accrue, and the holders will be entitled to no rights as such holders.
A notice of redemption was provided on December 29, 2020 to the holder of record of the Series J Preferred Stock and the holder of record of the Series K Preferred Stock. All of the shares of the Series J Preferred Stock and all of the shares of the Series K Preferred Stock being called for redemption are held of record by Cede & Co., as nominee of The Depositary Trust Company ("DTC"). Accordingly, the Series J Preferred Stock and the Series K Preferred Stock will be redeemed in accordance with the applicable procedures of DTC. Questions relating to the notice of redemption should be directed to Computershare, the Company's transfer agent and the redemption agent for the redemption of the Series J Preferred Stock and the Series K Preferred Stock (the "Redemption Agent"). The address and telephone number of the Redemption Agent are Computershare, 150 Royall Street, Canton, MA 02021; 1-800-546-5141.
About Taubman
Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet malls in the U.S. and Asia. Taubman’s U.S.-owned properties are the most productive in the publicly held U.S. mall industry. Founded in 1950, Taubman is headquartered in Bloomfield Hills, Mich. Taubman Asia, founded in 2005, is headquartered in Hong Kong. www.taubman.com
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FAQ
What is the redemption date for Taubman Centers' preferred stocks?
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What is the total payment for Series J Preferred Stock holders?
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