REIT Urstadt Biddle Properties to Sell Preferred Issue-Updated

By: ,

Shopping center REIT Urstadt Biddle Properties (ticker:UBP) has announced a new preferred offering.  UBP is a relatively good quality company which while shopping center focused also holds a numerous free standing retail buildings.

The company will use the proceeds to redeem their 7.50% preferred issue (UBP-D).  It has been about 2 years since UBP has brought an issue to market and that issue was at 7.125%.  We would expect the new issue to come to market around 7.25%–although the issue has not yet been priced.

When pricing is announced we will post the data (in the next 24 hours we would think).

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It will be interesting to see if companies (in particular REITS) use the current low interest rate environment to ‘re-fi’ higher coupon issues that they still have outstanding and have reached there optional redemption date (typically 5 years after issue).

Preliminary data on this issue can be found here.

Thanks to reader Rich for the heads up on this issue.

Issue has priced at 6.75%–much lower than we thought.

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