Bluerock Residential Growth REIT Prices New 8.25% Series A Cumulative Redeemable Preferred Stock (Puttable After 10/2022)
By: Tim McPartland,
Bluerock Residential Growth REIT has priced a new preferred offering with a number of interesting and attractive features.
Bluerock (ticker:BRG) is a apartment REIT which also does a bit of specialty financing for others. They came public in March, 2014 and so far to date have performed excellently.
The new preferred offering has a tasty 8.25% yield and has the typical 5 year optional redemption feature as it is officially perpetual.
The features we like and essentially turn the issue from a perpetual issue to a ‘Term Preferred’ issue is that beginning in 2022 holders may ‘put’ the shares back to the company for $25/share plus accrued dividends. If you ‘put’ the shares the company has the option to pay you cash or common shares or any combination.
Additionally these shares have a penalty rate beginning in 2022 as well. The coupon will rise to 10.25% in 2022 and by 50 cents/share on each anniversary date to a maximum coupon of 14%.
We need to do a bit more research on BRG, but believe we will be a buyer of this new preferred.
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