UMH Properties Inc.closed its public offeringof 2 million shares of 8.0% series B cumulative redeemable preferred stock.
The shares were offered in a registered direct placement at $25.50apiece, bringing in net proceeds of roughly $49.1 million, after expenses, the companysaid in an April 5 release.
The net proceeds from the offering will be used for general corporatepurposes, which may include the acquisition of manufactured homes for sale or leaseto customers, expansion of UMH's existing communities, potential purchase of additionalassets, and possible debt repayment on a short-term basis.
As disclosed previously, the preferred shares sold in the offeringform a single series with, have the same terms as, and will vote as a single classwith, the 1,801,200 outstanding series B preferred shares issued in October 2015 and rank on par with UMH's outstanding8.25% series A cumulative redeemable preferred stock, of which 3,663,800 sharesare currently outstanding.
Following the offering, UMH said its outstanding series B preferredshares now total 3,801,200. The series B shares are listed on the NYSE under theUMH PRB ticker, with a liquidation value of $25.00 per share.
CSCA Capital Advisors LLC served as lead placement agent forthe transaction, with Weeden & Co. LLP acting as settlement agent.