Home Alts News UDF IV Announces Preliminary Results of Tender Offer and 3rd Quarter Distributions

UDF IV Announces Preliminary Results of Tender Offer and 3rd Quarter Distributions

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Previously non-traded REIT, United Development Funding IV (UDF IV), recently announced the preliminary results of its tender offer. The company, which invests primarily in secured loans for the acquisition and development of land into single-family home lots, and the construction and model of new single-family homes, listed on the NASDAQ June 4, 2014.

UDF IV offered to purchase up to 1,707,317 common shares of beneficial interest with the offer expiring July 2, 2014 at 12:01 AM Easter Time. The 1,707,317 shares represent approximately 5.28% of the company’s currently issued and outstanding common shares.

According to the paying agent and depository for the tender offer, DST systems, Inc., 5,057,648 common shares were tendered at the purchase price of $20.50 per share. The aggregate cost of the tendered shares is approximately $35,000,000, excluding fees and expenses relating to the tender offer.

Since the offer was oversubscribed, those who tendered shares will have approximately 28.64% of their shares purchased on a pro rata basis.

In addition, the company also announced its monthly distributions for the third quarter.

UDF IV intends to continue paying monthly distributions at an annualized rate of $1.64 per share or $0.41 per share on a quarterly basis. Distributions will be paid monthly to shareholders of record at the close of business around the 15th day of each month, and will be payable around the 25th day of the same month.

UDF IV will pay a distribution of $0.1367 per share to shareholders of record at the close of business on July 15, 2014, August 15, 2014 and September 15, 2014. The distributions will be paid on July 25, 2014, August 25, 2014, and September 25, 2014, respectively.