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Bluerock Residential launches preferred stock offering, refinances loan tied to Fla. property


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Bluerock Residential launches preferred stock offering, refinances loan tied to Fla. property

BluerockResidential Growth REIT Inc. said it initiated an underwrittenpublic offering of preferred stock, and its operating partnership refinanced aloan attached to a propertyin the Tampa, Fla., suburb of Palm Harbor.

The dividend yield and other terms of the offering of seriesC cumulative redeemable preferred stock have yet to be determined. Theunderwriters have a 30-day option to purchase additional shares to cover anyoverallotments.

Bluerock Residential is seeking to list the preferred stockon the NYSE MKT under the symbol BRG-PrC. If approved, trading will likelystart within 30 days from the closing of the offering.

The net proceeds are expected to be used to fund futuremultifamily acquisitions and investments as well as for other general corporateand working capital purposes, which may include the funding of capitalimprovements at the company's properties.

Janney Montgomery Scott, D.A. Davidson & Co. and FBR areserving as book-running managers for the offering. Boenning & Scattergoodand William Blair are acting as co-managers.

Bluerock Residential noted in a separate news release thatthe senior loan refinancing relates to its joint venture interest in LansbrookVillage, a class A apartment community. The secured 10-year floating-rate loanhas a rate equal to 1 month LIBOR plus 2.44%. The loan will feature a 48-monthinterest-only period followed by principal amortization for the remaining term.

The new $57.2 million loan will be used to repay an existingsenior loan of approximately $44.4 million and significantly reduce theinterest rate of 4.41%.

According to a filing, the loan will mature Aug. 1, 2026,with the first payment due Sept. 1, 2016.