VEREIT® Announces $100 Million Partial Redemption of 6.70% Series F Cumulative Redeemable Preferred Stock

Rhea-AI Summary

VEREIT (NYSE: VER) announced a partial redemption of 4,000,000 shares of its 6.70% Series F Cumulative Redeemable Preferred Stock, accounting for about 21.20% of the total outstanding shares. The redemption will occur on January 15, 2021, at a price of $25.00 per share. Additionally, the company anticipates a property acquisition pipeline of $150 million to $300 million, expecting results at the high end. Holders of the Series F shares will receive a cash dividend of $0.1395833 for the period from December 15, 2020, to January 14, 2021, paid on the redemption date.

Positive

• Partial redemption of 4,000,000 shares improves capital structure.
• Expected property acquisition pipeline between $150 million to $300 million indicates growth potential.

Negative

• None.

PHOENIX, Dec. 16, 2020 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER) ("VEREIT" or the "Company"), a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S., announced today that it intends to redeem 4,000,000 shares of its 6.70% Series F Cumulative Redeemable Preferred Stock ("Series F Preferred Stock"), representing approximately 21.20% of its approximately 18.9 million shares of Series F Preferred Stock outstanding, on January 15, 2021 (the "Redemption Date").

This redemption is in addition to VEREIT's expected Q4 2020 to Q1 2021 property acquisition pipeline of $150 million to $300 million.  The Company previously announced it expects property acquisition results to be at the high end of that range. 

The shares of Series F Preferred Stock will be redeemed at a redemption price of $25.00 per share (the "Redemption Price"). Payment of the Redemption Price will be made on the Redemption Date.  As previously announced, VEREIT will pay the cash dividend on the Series F Preferred Stock of $0.1395833 for the period from December 15, 2020 through January 14, 2021 to holders of Series F Preferred Stock as of January 1, 2021, which is the record date for such dividend, on January 15, 2021.

Dividends on the shares of Series F Preferred Stock that are to be redeemed will cease to accrue on the Redemption Date. Upon redemption, the redeemed shares of Series F Preferred Stock will no longer be outstanding, and all rights of the holders of such shares will terminate, except the right of the holders to receive the cash payable upon such redemption, without interest.

All shares of Series F Preferred Stock are held in book-entry form and will be redeemed on a pro rata basis from the holders of record of such shares. As specified in the notice of partial redemption, shares of Series F Preferred Stock held in book-entry form through the Depository Trust Company ("DTC") will be redeemed according to DTC's procedures and shares of Series F Preferred Stock held through the records of Computershare Trust Company, N.A. (the "Redemption Agent") will be automatically redeemed by the Redemption Agent. Payment to DTC and the registered holders for the redeemed shares of Series F Preferred Stock will be made by the Redemption Agent.

The address for the Redemption Agent is as follows:

Computershare Trust Company, N.A.
150 Royall Street
Canton, MA 0202
Attn: Corporate Actions
Telephone: (800) 546-5141

About VEREIT
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. VEREIT has total real estate investments of $14.6 billion including approximately 3,800 properties and 88.9 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties.  VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange.  VEREIT uses, and intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.  Additional information about VEREIT can be found through social media platforms such as Twitter and LinkedIn.

Forward-Looking Statements
Information set forth in this press release contains forward-looking statements which reflect VEREIT's expectations and projections regarding future events and plans, including statements regarding the redemption of the Series F Preferred Stock and the Company's expected future property acquisition pipeline. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which may be difficult to predict and beyond VEREIT's control, that could cause actual events and plans or could cause VEREIT's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements.  These factors include the risks and uncertainties detailed from time to time in VEREIT's filings with the Securities and Exchange Commission ("SEC"), which are available at the SEC's website at www.sec.gov. VEREIT disclaims any obligation to publicly update or revise any forward-looking statements contained in this press release whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.

 

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SOURCE VEREIT, Inc.

FAQ

When is the VEREIT Series F Preferred Stock redemption date?

The redemption date for the VEREIT Series F Preferred Stock is January 15, 2021.

How many shares of Series F Preferred Stock will VEREIT redeem?

VEREIT plans to redeem 4,000,000 shares of its Series F Preferred Stock.

What is the redemption price for VEREIT's Series F Preferred Stock?

The redemption price for VEREIT's Series F Preferred Stock is $25.00 per share.

What dividend will be paid on VEREIT's Series F Preferred Stock?

A cash dividend of $0.1395833 will be paid for the period from December 15, 2020, to January 14, 2021.

What is the total number of Series F Preferred Stock shares outstanding?

There are approximately 18.9 million shares of Series F Preferred Stock outstanding.