Bedford Property Investors announces $50 million planned private placement.LAFAYETTE, Calif.--(BUSINESS WIRE)--May 18, 1995--Bedford Property Investors, Inc. (NYSE NYSE See: New York Stock Exchange :BED), announced that it has entered into a stock purchase agreement with an investment fund managed by Aldrich Eastman Waltch ("AEW AEW Airborne Early Warning AEW Air Expeditionary Wing AEW Airborne Electronic Warfare AEW Agr' Eau' Wat (Canadian agricultural consultant) AEW Amckerns Explosion Wars (Half Life community) ") to sell $50 million of the Company's series A cumulative convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. pay quarterly dividends equal to a 9% yield per annum Per annum Yearly. . The preferred shares will be convertible after two years by AEW into common shares at a conversion price of $6.00 per common share. From and after the fifth anniversary of the closing, the Company may redeem the series A shares for cash at a redemption premium redemption premium See call premium. of 5%, with the premium declining by 1% each year thereafter for five years. In addition, holders of the preferred shares have the right to cause the Company to redeem their shares at par, upon the occurrence of certain events. The Company intends to use the proceeds from the offering to retire floating-rate debt outstanding on the Company's line of credit with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , for working capital and for general corporate purposes, including acquisitions of suburban office and industrial 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 . Concurrently with the sale of the preferred shares, the Company's line of credit with Bank of America will be increased from $23 million to $60 million. The closing of the proposed stock sale is subject to completion of due diligence by AEW, regulatory clearance of proxy materials, approval by the shareholders of the Company, and other customary conditions. "This transaction will more than double our equity capitalization," said Peter B. Bedford, Chairman and Chief Executive Officer. "After paying off the outstanding balance on our line of credit, the Company will have approximately $80 million available to invest in the western United States. We have been working hard for many months on this private placement. Now we are focusing on the many acquisition opportunities in the west." Bedford Property Investors, Inc., is a self-administered equity real estate investment trust with investments in industrial and suburban office buildings concentrated in the western United States. It is traded on the New York and Pacific Stock Exchanges under its symbol "BED." Aldrich Eastman Waltch is a Boston-based investment advisor. CONTACT: Bedford Property Investors Peter B. Bedford/Jay Spangenberg, 510/283-8910 |
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