InPoint Upsizes and Prices $87.5 Million Series A Preferred Stock Offering
InPoint Commercial Real Estate Income Inc., a commercial mortgage non-traded real estate investment trust, has priced its underwritten public offering of 3.5 million shares of 6.75% Series A Cumulative Redeemable Preferred Stock.
InPoint Commercial Real Estate Income Inc., a commercial mortgage non-traded real estate investment trust, has priced its underwritten public offering of 3.5 million shares of 6.75% Series A Cumulative Redeemable Preferred Stock at $25.00 per share.
InPoint originally registered 2 million shares but decided to upsize the offering following the marketing period in order to “satisfy strong demand from potential investors,” the company said.
In addition, the company has granted the underwriters a 30-day option to purchase an additional 525,000 shares of the Series A preferred stock to cover over-allotments, if any. The stock will have a $25.00 per share liquidation preference.
The company will receive gross proceeds of $87.5 million (or approximately $100.6 million if the underwriters exercise their over-allotment option in full) from the sale of the preferred stock, before deducting the underwriting discounts and other estimated offering expenses. The offering is expected to close on September 22, 2021.
The net proceeds will be used to purchase targeted assets and for general corporate purposes.
The Series A preferred stock is expected to be listed on the New York Stock Exchange under the symbol “ICR PR A” and to trade within 30 days of the original issue date.
Raymond James & Associates is acting as the sole book-running manager.
InPoint is advised by an affiliate of Inland Real Estate Investment Corporation and sub-advised by an affiliate of Sound Point Capital Management LP.
The REIT invests primarily in floating-rate commercial real estate debt, including first mortgage loans, subordinate mortgage and mezzanine loans, and participations in such loans, secured by properties located within the United States.
As of June 30, 2021, InPoint’s portfolio was comprised of 36 debt investments with total unpaid principal balances of $554.8 million and one owned property, the Renaissance O’Hare, with a fair value of approximately $14 million. The company raised $276.7 million in its private offering from October 2016 to July 2019 and $38.3 million in its public offering from May 2019 through July 2021.
