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

Rhea-AI Summary

VEREIT announced the redemption of 6,000,000 shares of its 6.70% Series F Cumulative Redeemable Preferred Stock, representing approximately 19.44% of its total Series F shares, set for July 22, 2020. Each share will be redeemed at $25.00 plus accrued dividends, totaling $25.0325694. Additionally, a cash dividend of $0.1395833 will be paid for the period from June 15 to July 14, 2020, to holders as of July 1, 2020. On the redemption date, dividends will cease, and the redeemed shares will no longer be outstanding.

Positive

• Redemption of 6,000,000 shares may improve the company's capital structure.
• Total proceeds from the redemption will provide liquidity to investors.

Negative

• Redeeming shares may indicate a reduction in long-term financing options.
• The company is redeeming a significant percentage (19.44%) of its Series F Preferred Stock.

PHOENIX, June 22, 2020 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER) ("VEREIT") announced today that it intends to redeem 6,000,000 shares of its 6.70% Series F Cumulative Redeemable Preferred Stock ("Series F Preferred Stock"), representing approximately 19.44% of its approximately 30.9 million shares of Series F Preferred Stock, on July 22, 2020 (the "Redemption Date"). The shares of Series F Preferred Stock will be redeemed at a redemption price of $25.00 per share, plus accrued and unpaid dividends from July 15, 2020 to, but not including, the Redemption Date in an amount equal to $0.0325694 per share, for total proceeds of $25.0325694 per share (the "Redemption Price"). Payment of the Redemption Price will be made on July 22, 2020.  As previously announced, VEREIT will pay the cash dividend on the Series F Preferred Stock of $0.1395833 for the period from June 15, 2020 through July 14, 2020 to holders of Series F Preferred Stock as of July 1, 2020, which is the record date for such dividend, on July 15, 2020. 

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 02021
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 $14.8 billion including approximately 3,900 properties and 89.5 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" (within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect VEREIT's expectations and projections regarding future events and plans, including statements regarding the redemption of the Series F Preferred Stock. 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

What is the date for the VEREIT Series F Preferred Stock redemption?

The redemption will take place on July 22, 2020.

How much will VEREIT pay per share for the redeemed Series F Preferred Stock?

VEREIT will pay $25.0325694 per share, which includes accrued dividends.

What is the cash dividend amount for VEREIT's Series F Preferred Stock?

The cash dividend is $0.1395833 for the period from June 15 to July 14, 2020.

Who is eligible for the VEREIT Series F Preferred Stock dividend?

Holders as of July 1, 2020, are eligible for the dividend.

What happens to the dividends after the redemption date for Series F Preferred Stock?

Dividends will cease to accrue on the redemption date.