AR Global’s American Finance Trust Launches $30 Million Preferred Stock Offering
American Finance Trust Inc. (Nasdaq: AFIN), a former non-traded real estate investment trust sponsored by AR Global, has launched an underwritten public offering for 1.2 million shares of its 7.50% Series A Cumulative Redeemable Perpetual Preferred Stock under its existing shelf registration statement.
American Finance Trust Inc. (Nasdaq: AFIN), a former non-traded real estate investment trust sponsored by AR Global, has launched an underwritten public offering for 1.2 million shares of its 7.50% Series A Cumulative Redeemable Perpetual Preferred Stock under its existing shelf registration statement.
The company plans to use the net proceeds for general corporate purposes, which may include purchasing additional properties. Shares are priced at $25.00 each and have an annual dividend rate of 7.50 percent.
The joint bookrunning managers for the offering are BMO Capital Markets Corp. and Stifel, Nicolaus & Company Incorporated. Lead manager for the offering is FBR Capital Markets & Co., and co-managers for the offering are Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., William Blair & Company, L.L.C. and Boenning & Scattergood Inc.
The underwriters are expected to be granted a 30-day option to purchase additional shares of the preferred stock, and the company plans to list the shares on the Nasdaq Global Select Market.
AFIN stock closed at $10.75 on Wednesday.
American Finance Trust is focused on managing and acquiring a portfolio of single and multi-tenant properties that are service-retail focused. While structured as a non-traded REIT, American Finance Trust’s offering raised more than $1.6 billion in investor equity between April and October 2013. The company’s multi-billion-dollar portfolio consists of 626 single-tenant net lease and multi-tenant retail and lifestyle center properties, as of the fourth quarter of 2018.
