Landmark InfrastructurePartners LP on April 4 closed its public offering of 800,000 of 8.00% series A cumulative redeemableperpetual preferred units.
The company said it generated about $18.8 million in net proceedsfrom the offering, after deducting estimated underwriting discounts, fees and offeringexpenses. The offering included a 30-day option for the underwriters to buy up to120,000 additional series A preferred units. The units represent limited partnerinterests in the company. They have an annual distribution rate of 8.00% of the$25.00 liquidation preference per unit, equating to $2.00 per unit a year, accordingto a same-day filing.
The proceeds from the offering will be used to repay debt underthe company's revolving credit facility.
Holders of the series A preferred units issued in the offeringwill be entitled to receive cumulative cash quarterly distributions out of legallyavailable funds for such purposes, when, as and if declared by the board of LandmarkInfrastructure Partners GP LLC, the company's general partner. Distributions onsuch units will be cumulative from April 4 and will accrue at an annual rate of8.00% per $25.00 stated liquidation preference per preferred unit. They will bepayable quarterly every Jan. 15, April 15, July 15 and Oct. 15, starting July 15,2016. An initial distribution on such units amounting to 56.11 cents per unit willbe paid July 15.
The company may partially or fully redeem the series A preferredunits at any time on or after April 4, 2021, at a per-unit redemption price of $25.00plus an amount equal to all accumulated and unpaid distributions thereon to theredemption date. It may also redeem the units at the same redemption price aftercertain changes of control. If such option is not exercised, holders may converttheir preferred units into a number of common units per preferred unit as providedin the partnership agreement, according to the filing.
RBC Capital Markets LLC, FBR Capital Markets & Co., JanneyMontgomery Scott LLC, Wunderlich Securities Inc., Incapital LLC and Oppenheimer& Co. Inc. served as the offering's joint book-running managers. RBC Capitaland FBR Capital also served as the underwriters' representatives.