BRE Properties Prices $50 Million of 8.5% Preferred Securities.SAN FRANCISCO--(BUSINESS WIRE)--Jan. 26, 1999--BRE Properties, Inc. (NYSE NYSE See: New York Stock Exchange :BRE (Business Rules Engine) Software that automates policies and procedures within an organization, whether legal, internal or operational. The use of a rules engine (BRE) requires placing the company rules in an external repository that can be easily reviewed rather than ) announced today the pricing of a public offering of 2,000,000 shares of 8.5% Series A Cumulative Redeemable Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. at $25 per share. The preferred stock, which may be redeemed by the company at $25 per share, plus accrued and unpaid dividends, on or after January 29, 2004, has no stated maturity Stated maturity For the CMO tranche, the date the last payment would occur at zero CPR. , sinking fund sinking fund, sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid or mandatory redemption, and is not convertible into any other security of the company. The company granted the underwriters an over-allotment option for up to 300,000 shares. Net proceeds to the company from this offering, after all anticipated issuance costs but before any exercise of the underwriters' over-allotment option, are estimated to be approximately $48.3 million. Net proceeds will be used to reduce borrowings under the company's unsecured credit facility. Of the $400 million available to the company under the credit line, approximately $254 million was drawn prior to the application of proceeds from the current offering. The preferred stock, which has been rated BBB- by Standard & Poor's and Baa3 by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , will be listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Settlement is scheduled for January 29, 1999. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. The offering was underwritten by Morgan Stanley Dean Witter; A.G. Edwards & Sons, Inc.; Merrill Lynch & Co.; and Salomon Smith Barney. Copies of the final Prospectus Supplement can be obtained from Morgan Stanley Dean Witter, Attn: Prospectus Department, 1585 Broadway, New York, NY 10036, 212/761-6675. BRE Properties, Inc. is a self-administered, self-managed and fully integrated real estate investment trust focusing on the development, acquisition, ownership and management of multifamily properties in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . BRE owns and operates 85 apartment communities totaling 21,858 units in California, Arizona, Washington, Oregon, Nevada, New Mexico, Utah and Colorado. The company currently has six other apartment communities under development totaling 1,539 units. Additional information about BRE can be found on the company's web site (www.breproperties.com). |
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